Time Warner Cable Inc (TWC), Charter Communications, Inc. (CHTR) & More: Three Cable Companies America Hates the Most and One You Love

Sometimes, bigger is better
Verizon’s stock doesn’t look like a half-bad value, either. Although possessed of an obscene-looking P/E, the company churns out a lot of cash from its business. “Doing well by doing a good job,” you might say. This gives the stock a price-to-free cash flow ratio of just 9.3 — which seems cheap relative to mid-6% growth estimates and a 4.2% dividend yield.

Meanwhile, the stock’s occupying the bottom of Consumer Reports‘ list are a varied lot. Comcast, at a price-to-FCF ratio of 12.3, could actually turn out to be a better investment than the best cable provider if it lives up to expectations of a 17%-plus growth rate. Time Warner Cable Inc (NYSE:TWC), also with strong free cash flow, looks slightly undervalued. Charter Communications, Inc. (NASDAQ:CHTR), unprofitable, but generating some cash at least, looks like one to stay away from — as an investor and as a customer, both.

The article 3 Cable Companies America Hates the Most and 1 You Love originally appeared on Fool.com is written by Rich Smith.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Vodafone.

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