Virgin Media (NASDAQ: VMED) and CBS (NYSE:CBS) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
CBS pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Virgin Media does not pay a dividend. CBS pays out 16.9% of its earnings in the form of a dividend. CBS has increased its dividend for 6 consecutive years.
This table compares Virgin Media and CBS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
78.0% of CBS shares are held by institutional investors. 2.0% of CBS shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Virgin Media and CBS’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CBS||$13.69 billion||1.43||$357.00 million||$4.25||12.06|
CBS has higher revenue and earnings than Virgin Media. Virgin Media is trading at a lower price-to-earnings ratio than CBS, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Virgin Media and CBS, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CBS has a consensus target price of $70.83, suggesting a potential upside of 38.16%.
CBS beats Virgin Media on 9 of the 11 factors compared between the two stocks.
Virgin Media Company Profile
Virgin Media Inc. (Virgin Media)is engaged in entertainment and communications business. The Company has two segments: Consumer and Business. The Company is a provider of broadband Internet, television, mobile telephony and fixed line telephony services that offer a range of entertainment and communications services to residential and commercial customers throughout the United Kingdom. It is a provider of residential broadband Internet, pay television and fixed line telephony services by number of customers. As of December 31, 2011, the Company provided services to approximately 4.8 million residential cable customers on its network. The Company is also a mobile virtual network operators by number of customers, providing mobile telephone service to 1.5 million prepay mobile customers and approximately 1.5 million contract mobile customers over third party networks. In June 2013, Liberty Global Inc announced that it has completed the acquisition of Virgin Media Inc (Virgin Media).
CBS Company Profile
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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