Top 12 Low-Debt Communication Services Stocks
Marvin's rules found 12 Communication Services stocks whose debt is no more than half of their equity. Alphabet, Meta and QuinStreet have the highest Overall scores among them.
Communication Services covers internet platforms, advertising businesses, entertainment and publishing. This list shows the 12 companies in the sector that Marvin's rules flagged as carrying modest debt compared with their equity, meaning debt is no more than half of what shareholders own.
The list is ordered by Marvin's Overall score, not by who has the smallest debt. Every company here passed the same debt limit, so the debt-to-equity figures in each entry show how close each one sits to it.
Low debt is only one part of a company's health. Some names below also have thin margins, slowing sales or losses, so each entry includes a caution.
The list
How Marvin ranked these stocks
Marvin chose companies above a minimum size, ranked by Marvin scores that are relative to each company's own industry. This list covers the Communication Services sector, with the highest Overall score first. Each company needed debt no more than half of equity and an Overall score above a set minimum, with at most four stocks per industry. Because scores compare a company only with its industry peers, a high score in one industry does not mean the same thing as a high score in another.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Communication Services sector, highest Overall score first, among companies with debt no more than half of equity and an Overall score of at least 55; at most 4 per industry.
The stocks, one by one
Alphabet Inc. GOOG
Alphabet carries very little debt, with debt-to-equity of 0.19. Its operating margin of 33.1% and return on equity of 38.1% suggest strong profitability. Caution: its free cash flow margin of 11.9% is much lower than its operating margin.
Alphabet Inc. GOOGL
This is the other share class of Alphabet, so it shares the same business figures: debt-to-equity of 0.19 and revenue growth of 15.1%. Caution: it is not an independent second company, and its free cash flow margin of 11.9% is modest next to its profits.
Meta Platforms, Inc. META
Meta Platforms grew revenue 22.2% in its last fiscal year and kept a high operating margin of 38.1% and gross margin of 81.7%. Caution: its debt-to-equity of 0.43 is higher than Alphabet's, though still within this list's limit.
QuinStreet, Inc. QNST
QuinStreet grew revenue 18.3% and has low debt, with debt-to-equity of 0.24. Its return on equity is 25.1%. Caution: its operating margin of 2.7% and gross margin of 11.3% are thin, leaving little cushion if sales slip.
The Walt Disney Company DIS
Disney has a healthy operating margin of 18.4% and moderate debt, with debt-to-equity of 0.42. Caution: revenue growth of 3.4% is modest, return on equity of 7.8% is low, and no gross margin figure is available.
Taboola.com Ltd. TBLA
Taboola has low debt, with debt-to-equity of 0.17, and turns revenue into cash reasonably well, with a free cash flow margin of 10.2%. Caution: its operating margin of 6.5% is thin, and revenue growth of 8.3% is moderate.
Versant Media Group, Inc. Class A VSNT
Versant Media Group converts a lot of revenue into cash, with a free cash flow margin of 25.9% and an operating margin of 17.7%. Debt-to-equity is 0.36. Caution: revenue growth was -5.3%, which means sales shrank last year.
Ziff Davis, Inc. ZD
Ziff Davis shows a gross margin of 85.0%, a free cash flow margin of 22.0% and return on equity of 28.8%, with debt-to-equity of 0.39. Caution: revenue growth of 3.5% is slow and its operating margin of 7.9% is modest.
Magnite, Inc. MGNI
Magnite has a strong free cash flow margin of 29.1% and an operating margin of 15.6%, with revenue growth of 6.9%. Caution: its debt-to-equity of 0.45 is the highest on this list, close to the limit.
News Corporation NWSA
News Corporation has modest debt, with debt-to-equity of 0.34, and grew revenue 6.8%. Its free cash flow margin is 9.0%. Caution: return on equity of 6.7% is low, and no operating margin figure is available.
Sphere Entertainment Co. SPHR
Sphere Entertainment has debt-to-equity of 0.35, within this list's limit. Caution: it is not profitable on these figures, with an operating margin of -11.4% and return on equity of -3.2%, and no growth or free cash flow data are available.
Boston Omaha Corporation BOC
Boston Omaha has the lowest debt on this list, with debt-to-equity of 0.16, a gross margin of 66.2% and revenue growth of 5.6%. Caution: its operating margin of -13.7% is negative, so it is losing money from operations.
Common questions
What does debt-to-equity mean?
Debt-to-equity compares what a company owes with what its shareholders own. A lower number means the company relies less on borrowed money. Every stock on this list has debt of no more than half its equity.
Does low debt mean a company is a safe stock?
No. Low debt reduces one kind of risk, but a company can still have shrinking sales, thin margins or losses. Several companies here show weaker figures in those areas, which is why each entry includes a caution.
Why do GOOG and GOOGL both appear?
They are two share classes of the same company, Alphabet. They share the same business figures, such as debt and margins, but can have slightly different Marvin scores, so both qualified under the same rules.
Keep reading
- Top 15 Communication Services Stocks by Marvin Opportunity Score
- Top 15 Communication Services Stocks by Marvin Score
- Top 15 Communication Services Stocks by Business Quality
- Top 15 Internet Content & Information Stocks
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.