Critical Review: CBS Corporation (NYSE:CBS) and Its Peers

CBS Corporation (NYSE: CBS) is one of 39 public companies in the “Broadcasting” industry, but how does it contrast to its rivals? We will compare CBS Corporation to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, earnings and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for CBS Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBS Corporation 0 4 23 0 2.85
CBS Corporation Competitors 219 1140 2595 62 2.62

CBS Corporation currently has a consensus target price of C$73.38, suggesting a potential upside of 29.33%. As a group, “Broadcasting” companies have a potential upside of 19.63%. Given CBS Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CBS Corporation is more favorable than its rivals.

Profitability

This table compares CBS Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBS Corporation 2.14% 58.49% 7.60%
CBS Corporation Competitors -20.29% 10.13% 1.78%

Dividends

CBS Corporation pays an annual dividend of C$0.72 per share and has a dividend yield of 1.3%. CBS Corporation pays out 98.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Broadcasting” companies pay a dividend yield of 1.6% and pay out 60.9% of their earnings in the form of a dividend. CBS Corporation has increased its dividend for 5 consecutive years. CBS Corporation lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

CBS Corporation has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, CBS Corporation’s rivals have a beta of 1.49, indicating that their average share price is 49% more volatile than the S&P 500.

Insider and Institutional Ownership

75.0% of CBS Corporation shares are held by institutional investors. Comparatively, 56.0% of shares of all “Broadcasting” companies are held by institutional investors. 1.7% of CBS Corporation shares are held by insiders. Comparatively, 11.8% of shares of all “Broadcasting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares CBS Corporation and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
CBS Corporation $13.17 billion $1.26 billion 77.73
CBS Corporation Competitors $11.84 billion $1.39 billion 204.92

CBS Corporation has higher revenue, but lower earnings than its rivals. CBS Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

CBS Corporation beats its rivals on 9 of the 15 factors compared.

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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