Central European Media Enterprises (NASDAQ: CETV) and Tribune Media (NYSE:TRCO) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Central European Media Enterprises and Tribune Media, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central European Media Enterprises 0 0 0 0 N/A
Tribune Media 1 4 1 0 2.00

Tribune Media has a consensus target price of $43.88, indicating a potential upside of 6.57%. Given Tribune Media’s higher probable upside, analysts plainly believe Tribune Media is more favorable than Central European Media Enterprises.

Profitability

This table compares Central European Media Enterprises and Tribune Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Central European Media Enterprises 4.70% -42.57% 2.44%
Tribune Media -6.12% 4.11% 1.50%

Insider and Institutional Ownership

30.4% of Central European Media Enterprises shares are held by institutional investors. Comparatively, 94.2% of Tribune Media shares are held by institutional investors. 1.8% of Central European Media Enterprises shares are held by company insiders. Comparatively, 0.6% of Tribune Media shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Central European Media Enterprises does not pay a dividend. Tribune Media pays out -75.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Central European Media Enterprises and Tribune Media’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Central European Media Enterprises $638.01 million 1.12 -$180.29 million ($0.03) -164.95
Tribune Media $1.95 billion 1.85 $14.24 million ($1.33) -30.95

Tribune Media has higher revenue and earnings than Central European Media Enterprises. Central European Media Enterprises is trading at a lower price-to-earnings ratio than Tribune Media, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Central European Media Enterprises has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Tribune Media has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Summary

Tribune Media beats Central European Media Enterprises on 10 of the 15 factors compared between the two stocks.

Central European Media Enterprises Company Profile

Central European Media Enterprises Ltd. (CME Ltd.) is a media and entertainment company operating in Central and Eastern Europe. The Company’s assets are held through a series of Dutch and Curacao holding companies. The Company manages its business on a geographical basis, with six segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia. The Bulgaria segment operated one general entertainment channel, BTV, and five other channels, including BTV CINEMA, BTV COMEDY, RING.BG, BTV ACTION and BTV LADY, as of December 31, 2016. The Croatia segment operated one general entertainment channel, NOVA TV (Croatia), as of December 31, 2016. The Czech Republic segment operated one general entertainment channel, TV NOVA (Czech Republic), as of December 31, 2016. The Romania segment operated one general entertainment channel, PRO TV, as of December 31, 2016. The Slovak Republic segment operated one general entertainment channel, TV MARKIZA, as of December 31, 2016.

Tribune Media Company Profile

Tribune Media Company, through its subsidiaries, operates as a media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV, a digital multicast networks; Tribune Studios, a development and production studio; Screener, an entertainment Website; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.

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