Comcast Corporation (NASDAQ:CMCSA) Furthers Edge to Its Competitors

February 16, 2016

Portfolio Manager Dan Hanson of Jarislowsky Fraser Global Investment Management says Comcast Corporation (NASDAQ:CMCSA) is a good example of a company with a strong competitive advantage relative to its peers.

It’s got a technology and a scale advantage that allows it to invest to further differentiate the value it brings to its customers. It’s got, we think, a culture of innovation that gives us comfort they’re going to continue to invest and maintain that advantage.

Driving all of that is, we think, a management culture that comes from the leadership. The Roberts family has played a huge role in building this business over decades and has brought huge value by bringing in a world-class professional management team. The likes of Steve Burke running the broadcast assets, Michael Cavanagh just joined as CFO, and we think that’s illustrative of just a best-in-class deep bench for great management strength.

So Comcast has got a great competitive position. They have technology and scale and, importantly, a great record for capital allocation to benefit shareholders — and all of that, we think, at a valuation that’s modest and fits the bill of a better-than-average business at very much an average valuation.

Dan Hanson