Viacom (NASDAQ: VIAB) is one of 25 publicly-traded companies in the “Entertainment Production” industry, but how does it compare to its competitors? We will compare Viacom to similar companies based on the strength of its profitability, dividends, earnings, valuation, analyst recommendations, risk and institutional ownership.
Volatility and Risk
Viacom has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Viacom’s competitors have a beta of 0.91, suggesting that their average share price is 9% less volatile than the S&P 500.
This table compares Viacom and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Viacom and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Viacom currently has a consensus target price of $42.14, indicating a potential upside of 52.45%. As a group, “Entertainment Production” companies have a potential upside of 19.54%. Given Viacom’s higher probable upside, research analysts plainly believe Viacom is more favorable than its competitors.
Valuation and Earnings
This table compares Viacom and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Viacom||$13.17 billion||$2.92 billion||7.59|
|Viacom Competitors||$6.27 billion||$1.49 billion||43.92|
Viacom has higher revenue and earnings than its competitors. Viacom is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
79.2% of Viacom shares are held by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are held by institutional investors. 0.4% of Viacom shares are held by insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Viacom pays out 22.0% of its earnings in the form of a dividend. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.9% of their earnings in the form of a dividend. Viacom is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Viacom beats its competitors on 10 of the 15 factors compared.
Viacom Inc. offers global media brands that create television programs, motion pictures, short-form content, applications, games, consumer products, social media experiences and other entertainment content. As of September 30, 2016, the Company offered its services for audiences in more than 180 countries. The Company operates through two segments: Media Networks and Filmed Entertainment. The Media Networks segment creates, acquires and distributes programming and other content for audiences The Media Networks segment provides entertainment content and related branded products for advertisers, content distributors and retailers. The Filmed Entertainment segment produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, Paramount Animation, Insurge Pictures, Nickelodeon Movies, MTV Films and Paramount Television brands.
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