Comcast (CMCSK) and CBS Corporation (CBS) Financial Contrast

Comcast (NASDAQ: CMCSK) and CBS Corporation (NYSE:CBS) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Comcast and CBS Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comcast 0 0 0 0 N/A
CBS Corporation 0 4 22 0 2.85

CBS Corporation has a consensus price target of $75.10, indicating a potential upside of 28.27%. Given CBS Corporation’s higher possible upside, analysts clearly believe CBS Corporation is more favorable than Comcast.

Insider & Institutional Ownership

75.1% of CBS Corporation shares are owned by institutional investors. 2.0% of CBS Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Comcast and CBS Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Comcast N/A N/A N/A N/A N/A
CBS Corporation $13.20 billion 1.78 $3.05 billion $0.34 172.21

CBS Corporation has higher revenue and earnings than Comcast.

Profitability

This table compares Comcast and CBS Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Comcast 11.98% 18.32% 5.56%
CBS Corporation 1.27% 49.51% 7.68%

Dividends

CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Comcast does not pay a dividend. CBS Corporation pays out 211.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBS Corporation has raised its dividend for 5 consecutive years.

Summary

CBS Corporation beats Comcast on 9 of the 11 factors compared between the two stocks.

About Comcast

Comcast Corporation is a media and technology company. The Company has two primary businesses: Comcast Cable and NBCUniversal. Its Comcast Cable business operates in the Cable Communications segment. Its NBCUniversal business operates in four business segments: Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Its Cable Communications segment consists of the operations of Comcast Cable, which provides video, high-speed Internet and voice services to residential customers under the XFINITY brand. Its Cable Networks segment consists of a portfolio of national cable networks. Its Broadcast Television segment operates the NBC and Telemundo broadcast networks. Its Filmed Entertainment segment primarily produces, acquires, markets and distributes filmed entertainment across the world, and it also develops, produces and licenses live stage plays. Its Theme Parks segment consists primarily of its Universal theme parks in Orlando, Florida and Hollywood, California.

About CBS Corporation

CBS Corporation is a mass media company. The Company operates through four segment: Entertainment, Cable Networks, Publishing, Local Media. The Entertainment segment comprises the CBS TV Network; CBS TV Studios; CBS Studios International and CBS TV Distribution; CBS Interactive; CBS Films; and the Company’s digital streaming services, CBS All Access and CBSN. The Cable Networks segment comprises Showtime Networks, which operates its subscription program services, Showtime, The Movie Channel, and Flix. The Publishing segment comprises Simon & Schuster, which publishes and distributes consumer books under imprints such as Simon & Schuster, Pocket Books, Scribner and Gallery Books. The Local Media segment comprises CBS TV Stations, it owns 30 broadcast TV stations; and CBS Local Digital Media. Its businesses span the media and entertainment industries, including the CBS TV Network, cable networks and content production and distribution.

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