Comcast Corporation (CMCSA), Time Warner Cable Inc (TWC): 4 Cable and Home Entertainment Stocks to Consider Now

DIRECTV (NASDAQ:DTV): The growth stock of the group

DIRECTV (NASDAQ:DTV) is the largest satellite television provider in the country. As of Dec. 31, 2012, it had just over 20 million domestic users, plus another 4 million in Latin America. It holds a 93% stake in SkyBrazil with 3.8 million subscribers, and a 41% interest in Sky Mexico. Those properties outside of the United States are more profitable by 5% in profit margin than the domestic business is, and thankfully for DIRECTV (NASDAQ:DTV), those Latin properties are growing their subscribers at a rate far outstripping the domestic business.

In the first quarter of 2013, the company added 604,000 domestic customers, and 583,000 in its smaller Latin American unit. Overall in the quarter, revenue grew by 8% to $7.6 billion and earnings came to $690 million, or $1.20 per share, the latter being a 12% advance from the year ago.

I have little doubt that DIRECTV (NASDAQ:DTV) will continue to expand, particularly in its high- margin Latin business. It will continue to buyback shares as well. Those looking for a long-term growth situation need look no further than DirecTV.

Conclusion

As long as people live in homes they will want entertainment options. From a long-term growth point, I prefer the foreign exposure of DIRECTV (NASDAQ:DTV). For growth and income, Time Warner Cable stands apart.

Bill Edson has no position in any stocks mentioned. The Motley Fool recommends DirecTV.

The article 4 Cable and Home Entertainment Stocks to Consider Now originally appeared on Fool.com and is written by Bill Edson.

Bill is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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