Rentrak (NASDAQ: RENT) and Viacom (NASDAQ:VIAB) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Valuation and Earnings

This table compares Rentrak and Viacom’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rentrak N/A N/A N/A N/A N/A
Viacom $13.17 billion 0.87 $2.92 billion $3.64 7.87

Viacom has higher revenue and earnings than Rentrak.

Institutional and Insider Ownership

78.0% of Viacom shares are owned by institutional investors. 0.4% of Viacom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Rentrak and Viacom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rentrak 3.80% 2.04% 1.75%
Viacom 11.04% 30.89% 6.39%

Analyst Ratings

This is a summary of current recommendations for Rentrak and Viacom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rentrak 0 0 0 0 N/A
Viacom 5 13 10 0 2.18

Viacom has a consensus target price of $42.08, suggesting a potential upside of 46.89%. Given Viacom’s higher possible upside, analysts clearly believe Viacom is more favorable than Rentrak.

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Rentrak does not pay a dividend. Viacom pays out 22.0% of its earnings in the form of a dividend.

Summary

Viacom beats Rentrak on 9 of the 10 factors compared between the two stocks.

Rentrak Company Profile

Rentrak Corporation is a media measurement and consumer targeting company serving the entertainment, television (TV), video and advertising industries. The Company’s Software as a Service (SaaS) technology merges television viewership information from televisions and devices with consumer behavior and purchase information across multiple platforms, devices and distribution channels. The Company’s product offerings, which are referred as Essentials include TV Everywhere, which includes TV Essentials and StationView Essentials; Movies Everywhere, which includes Box Office Essentials, International Box Office Essentials, PostTrak and PreAct; OnDemand Everywhere, which includes OnDemand Essentials, Digital Download Essentials, Multiscreen Essentials and other Over the Top measurement tools and related products, and Other Services, which includes Studio Revenue Share Essentials (SRSE) and other products relating to measurement of physical content in the home video rental industry.

Viacom Company Profile

Viacom Inc. offers global media brands that create television programs, motion pictures, short-form content, applications, games, consumer products, social media experiences and other entertainment content. As of September 30, 2016, the Company offered its services for audiences in more than 180 countries. The Company operates through two segments: Media Networks and Filmed Entertainment. The Media Networks segment creates, acquires and distributes programming and other content for audiences The Media Networks segment provides entertainment content and related branded products for advertisers, content distributors and retailers. The Filmed Entertainment segment produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, Paramount Animation, Insurge Pictures, Nickelodeon Movies, MTV Films and Paramount Television brands.

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