Analyzing Central European Media Enterprises (CETV) and CBS Corporation (CBS)

Central European Media Enterprises (NASDAQ: CETV) and CBS Corporation (NYSE:CBS) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Dividends

CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Central European Media Enterprises 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.

Risk & Volatility

Central European Media Enterprises has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, CBS Corporation has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Central European Media Enterprises and CBS Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central European Media Enterprises 0 0 0 0 N/A
CBS Corporation 0 4 22 0 2.85

CBS Corporation has a consensus price target of $75.06, suggesting a potential upside of 29.59%. Given CBS Corporation’s higher possible upside, analysts clearly believe CBS Corporation is more favorable than Central European Media Enterprises.

Insider and Institutional Ownership

28.3% of Central European Media Enterprises shares are held by institutional investors. Comparatively, 75.1% of CBS Corporation shares are held by institutional investors. 1.8% of Central European Media Enterprises shares are held by insiders. Comparatively, 2.0% of CBS Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Central European Media Enterprises and CBS Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Central European Media Enterprises $650.66 million 0.97 $162.63 million ($0.10) -43.50
CBS Corporation $13.20 billion 1.76 $3.05 billion $0.34 170.35

CBS Corporation has higher revenue and earnings than Central European Media Enterprises. Central European Media Enterprises is trading at a lower price-to-earnings ratio than CBS Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Central European Media Enterprises and CBS Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Central European Media Enterprises 2.82% -18.46% 1.26%
CBS Corporation 1.27% 49.51% 7.68%

Summary

CBS Corporation beats Central European Media Enterprises on 13 of the 15 factors compared between the two stocks.

About Central European Media Enterprises

Central European Media Enterprises Ltd. (CME Ltd.) is a media and entertainment company operating in Central and Eastern Europe. The Company’s assets are held through a series of Dutch and Curacao holding companies. The Company manages its business on a geographical basis, with six segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia. The Bulgaria segment operated one general entertainment channel, BTV, and five other channels, including BTV CINEMA, BTV COMEDY, RING.BG, BTV ACTION and BTV LADY, as of December 31, 2016. The Croatia segment operated one general entertainment channel, NOVA TV (Croatia), as of December 31, 2016. The Czech Republic segment operated one general entertainment channel, TV NOVA (Czech Republic), as of December 31, 2016. The Romania segment operated one general entertainment channel, PRO TV, as of December 31, 2016. The Slovak Republic segment operated one general entertainment channel, TV MARKIZA, as of December 31, 2016.

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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