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

Analyst Ratings

This is a breakdown of current ratings and target prices for Starz Acquisition and CBS Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starz Acquisition 0 0 0 0 N/A
CBS Corporation 0 5 21 0 2.81

CBS Corporation has a consensus price target of $72.98, suggesting a potential upside of 12.62%. Given CBS Corporation’s higher possible upside, analysts plainly believe CBS Corporation is more favorable than Starz Acquisition.

Dividends

CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Starz Acquisition 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. Starz Acquisition has increased its dividend for 5 consecutive years.

Valuation and Earnings

This table compares Starz Acquisition and CBS Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Starz Acquisition N/A N/A N/A N/A N/A
CBS Corporation $13.20 billion 1.97 $3.05 billion $0.34 190.59

CBS Corporation has higher revenue and earnings than Starz Acquisition.

Profitability

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

Net Margins Return on Equity Return on Assets
Starz Acquisition -68.21% -14.75% -6.41%
CBS Corporation 1.27% 49.51% 7.68%

Institutional and Insider Ownership

74.0% of CBS Corporation shares are owned by institutional investors. 1.7% of CBS Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

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

Starz Acquisition Company Profile

Starz Acquisition LLC, formerly Starz, is an integrated media and entertainment company. The Company provides premium subscription video programming in the United States to cable operators, satellite television providers, telecommunications companies and online video providers. The Company’s segments include Starz Networks and Starz Distribution. The Starz Networks segment provides premium subscription video programming to the United States multichannel video programming distributors (MVPDs), including cable operators (such as Comcast and Time Warner Cable), satellite television providers (such as DIRECTV and DISH Network) and telecommunications companies (such as AT&T and Verizon). The Starz Distribution segment includes the operations of its Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution businesses. It also develops, produces and acquires entertainment content and distributes this content to consumers in the United States and throughout the world.

CBS Corporation 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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