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

Risk & Volatility

Viacom has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Viacom’s peers have a beta of 0.92, meaning that their average share price is 8% less volatile than the S&P 500.

Profitability

This table compares Viacom and its peers’ 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 2.67% 10.87% 3.53%

Earnings and Valuation

This table compares Viacom and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Viacom $13.17 billion $2.92 billion 9.73
Viacom Competitors $6.27 billion $1.49 billion 150.82

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

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.3%. 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 peers, given its higher yield and lower payout ratio.

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 insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Viacom and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 1 5 4 0 2.30
Viacom Competitors 102 475 1226 24 2.64

Viacom presently has a consensus price target of $42.86, indicating a potential upside of 21.07%. As a group, “Entertainment Production” companies have a potential upside of 13.12%. Given Viacom’s higher possible upside, analysts clearly believe Viacom is more favorable than its peers.

Summary

Viacom beats its peers on 9 of the 15 factors compared.

About Viacom

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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