CBS Corporation (NYSE: CBS) and Phoenix New Media Limited (NYSE:FENG) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Insider and Institutional Ownership

75.1% of CBS Corporation shares are held by institutional investors. Comparatively, 12.3% of Phoenix New Media Limited shares are held by institutional investors. 2.0% of CBS Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Phoenix New Media Limited 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 and Volatility

CBS Corporation has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Phoenix New Media Limited has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for CBS Corporation and Phoenix New Media Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBS Corporation 0 5 22 0 2.81
Phoenix New Media Limited 0 0 1 0 3.00

CBS Corporation presently has a consensus price target of $73.17, indicating a potential upside of 14.78%. Phoenix New Media Limited has a consensus price target of $4.30, indicating a potential downside of 0.46%. Given CBS Corporation’s higher possible upside, analysts plainly believe CBS Corporation is more favorable than Phoenix New Media Limited.

Profitability

This table compares CBS Corporation and Phoenix New Media Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBS Corporation 1.27% 49.51% 7.68%
Phoenix New Media Limited 4.39% 3.00% 2.06%

Earnings & Valuation

This table compares CBS Corporation and Phoenix New Media Limited’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CBS Corporation $13.20 billion 1.94 $3.05 billion $0.34 187.50
Phoenix New Media Limited $218.74 million 1.52 $11.06 million $0.13 33.23

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

Summary

CBS Corporation beats Phoenix New Media Limited on 13 of the 17 factors compared between the two stocks.

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.

About Phoenix New Media Limited

Phoenix New Media Limited is a media company providing content on an integrated platform across Internet, mobile and television channels in China. The Company enables consumers to access professional news and other information, and upload text and images (UGC) on the Internet and through their mobile devices. It also transmits its UGC and in-house produced content to television viewers primarily through Phoenix TV. In addition to professionally produced content, content from Phoenix TV and its in-house produced content, the Company allows its users to UGC to its Websites and mobile applications. It operates in two segments: net advertising services and paid services. It provides its content and services through channels, including ifeng.com channel, video channel and mobile channel, and also transmits its content to television viewers, primarily through Phoenix TV. Together, these channels form a single converged platform providing integrated text, image and video content.

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