Did Comcast Corporation (CMCSA) Get a Bargain Deal?

With that favoritism toward Internet, however, comes a big boom for Comcast. Net subscriber additions for high-speed Internet were 341,000 for the company. This topped analyst estimates.

The company increased its dividend and committed to a $2 billion share buyback as well.

Outlook
Comcast is a unique play in its space at the moment, as it has taken a zig where others have zagged. Competitors such as Time Warner Inc. (NYSE:TWX) and its affiliate Time Warner Cable Inc (NYSE:TWC), as well as Cablevision Systems Corporation (NYSE:CVC), have been adamant about separating content creation from distribution.

Comcast management is convinced that these two need not be separated and that they can actually add value to each other.

As far as valuation goes, Comcast currently sits between Time Warner Cable and Cablevision in terms of forward P/E, but given its growth prospects and the new acquisition, I am tempted to think that Comcast may be the most attractively priced pick of the bunch.

Of course, investors should only buy in industries in which they are confident. Media businesses can swing wildly, especially one that is closely married to the popularity of its content.

The article Did Comcast Get a Bargain Deal? originally appeared on Fool.com and is written by Michael B. Lewis.

Fool contributor Michael B. Lewis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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