Viacom (NASDAQ: VIA) and Eros International PLC (NYSE:EROS) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Eros International PLC does not pay a dividend. Viacom pays out 22.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Viacom and Eros International PLC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Viacom $13.17 billion 1.16 $2.92 billion $3.64 10.40
Eros International PLC $252.99 million 3.11 $26.53 million $0.06 220.87

Viacom has higher revenue and earnings than Eros International PLC. Viacom is trading at a lower price-to-earnings ratio than Eros International PLC, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

2.3% of Viacom shares are held by institutional investors. Comparatively, 63.9% of Eros International PLC shares are held by institutional investors. 0.7% of Viacom shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Viacom and Eros International PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viacom 11.04% 30.89% 6.39%
Eros International PLC 1.50% 0.41% 0.27%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Viacom and Eros International PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 1 6 4 0 2.27
Eros International PLC 0 0 2 0 3.00

Viacom currently has a consensus price target of $42.86, suggesting a potential upside of 13.23%. Eros International PLC has a consensus price target of $15.00, suggesting a potential upside of 13.21%. Given Viacom’s higher probable upside, research analysts clearly believe Viacom is more favorable than Eros International PLC.

Risk and Volatility

Viacom has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Eros International PLC has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Summary

Viacom beats Eros International PLC on 11 of the 16 factors compared between the two stocks.

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.

Eros International PLC Company Profile

Eros International Plc (Eros) is a holding company, which serves the Indian film entertainment industry. The Company’s principal activities include the acquisition, co-production and distribution of Indian films and related content. It distributes its film content through the distribution channels, such as theatrical, including multiplex chains and standalone theaters; television syndication, including satellite television broadcasting, cable television and terrestrial television; digital and ancillary, including music, inflight entertainment, home video, Internet protocol television (IPTV), video on demand (VOD), and Internet channels and Eros Now. As of March 31, 2016, its distribution network extends to over 50 countries, such as the United States, the United Kingdom, the Middle East, Germany, Poland, Russia, Romania, Indonesia and Arabic speaking countries. It conducts global operations through its Indian and international subsidiaries, including Eros International Media Limited.

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