Morningstar Rating

Stock Research and Analysis

by Michael Hodel, CFA

Bulls Say

No other company can match Comcast's ability to offer multiple services over one connection within the territories it serves. In addition to greater customer loyalty, delivering multiple services leads to higher cash flow per subscriber.
The small and midsize business services market should be a source of growth for Comcast for several years.
NBCU is a premier media company. Comcast's ownership of this business diversifies the business and gives the firm a seat at the table as television content distribution evolves. Read more 

Bears Say

The markets that Comcast serves are extremely mature and face threats from new technologies. The firm's growth potential is very limited.
Internet-based video distribution could cause customers to shift away from cable or pressure cable prices. NBCU increases Comcast's exposure to this threat.
Comcast competes head-to-head with the phone companies for consumers' spending on the complete spectrum of telecom and TV services. Although the phone companies' networks are generally inferior to Comcast's today, these companies are investing in their networks, both fixed line and wireless. Read more 

Management

The biggest issue we have with Comcast's stewardship is that the founding Roberts family owns all of the supervoting Class B shares, thereby holding 33% voting control of the firm. Holders of Class A shares (CMCSA) have the remainder of voting power,  Read more 

Profile

Comcast is the largest operator in the cable industry. Its networks reach 54 million households, serving 22 million video, 21 million Internet access, and 11 million phone   Read more 

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