Viacom (NASDAQ: VIA) is one of 25 publicly-traded companies in the “Entertainment Production” industry, but how does it contrast to its competitors? We will compare Viacom to related businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Viacom and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 1 5 4 0 2.30
Viacom Competitors 142 535 1246 31 2.60

Viacom currently has a consensus target price of $42.86, indicating a potential upside of 13.23%. As a group, “Entertainment Production” companies have a potential upside of 17.35%. Given Viacom’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Viacom has less favorable growth aspects than its competitors.

Risk & Volatility

Viacom has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Viacom’s competitors have a beta of 0.91, suggesting that their average share price is 9% less volatile than the S&P 500.

Profitability

This table compares Viacom and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viacom 11.04% 30.89% 6.39%
Viacom Competitors 4.62% 11.46% 4.02%

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Viacom pays out 22.0% of its earnings in the form of a dividend. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.9% of their earnings in the form of a dividend. Viacom is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Viacom and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Viacom $13.17 billion $2.92 billion 10.40
Viacom Competitors $6.27 billion $1.49 billion 42.61

Viacom has higher revenue and earnings than its competitors. Viacom is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

2.3% of Viacom shares are held by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are held by institutional investors. 0.7% of Viacom shares are held by company insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Viacom beats its competitors on 8 of the 15 factors compared.

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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