Critical Review: RTL Group (RGLXY) vs. The Competition

RTL Group (OTCMKTS:RGLXY) is one of 259 public companies in the “Media” industry, but how does it weigh in compared to its rivals? We will compare RTL Group to similar businesses based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, risk, profitability and valuation.

Earnings & Valuation

This table compares RTL Group and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
RTL Group	N/A	N/A	8.24
RTL Group Competitors	$3.20 billion	-$7.90 million	17.48

RTL Group’s rivals have higher revenue, but lower earnings than RTL Group. RTL Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

RTL Group pays an annual dividend of $0.49 per share and has a dividend yield of 14.2%. RTL Group pays out 117.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Media” companies pay a dividend yield of 5.3% and pay out 128.4% of their earnings in the form of a dividend. RTL Group is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares RTL Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RTL Group	N/A	N/A	N/A
RTL Group Competitors	-20.08%	-48.65%	-5.12%

Insider & Institutional Ownership

0.0% of RTL Group shares are owned by institutional investors. Comparatively, 38.8% of shares of all “Media” companies are owned by institutional investors. 17.6% of shares of all “Media” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for RTL Group and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RTL Group	0	1	0	0	2.00
RTL Group Competitors	2230	6848	10808	473	2.47

As a group, “Media” companies have a potential upside of 21.02%. Given RTL Group’s rivals stronger consensus rating and higher possible upside, analysts plainly believe RTL Group has less favorable growth aspects than its rivals.

Summary

RTL Group rivals beat RTL Group on 8 of the 13 factors compared.

About RTL Group

RTL Group S.A., an entertainment company, operates television (TV) channels and radio stations, and provides streaming services in Germany, France, the Netherlands, Belgium, the United Kingdom, the United States, and internationally. The RTL Deutschland segment operates TV, streaming, radio, digital, and publishing; owns TV channels, magazines, podcasts, and various digital offerings; and radio groups, including Antenne Bayern and Radio Hamburg. The Groupe M6 segment operates television channels; radio stations; and digital services. The Fremantle segment is involved in the content production comprising of distribution and licensing business. The RTL Nederland segment operates free-to-air television channels; an independent news organization, Videoland, a streaming service; digital pay-TV channels; and the digital weather platform. The Other segment operates RTL play, a streaming service; RTL Today Radio, 24-hour English radio station; Broadcasting Center Europe; We Are Era; RTL Luxembourg; RTL Radio Letzebuerg; and RTL Tele Letzebuerg. The company was founded in 1924 and is based in Luxembourg City, Luxembourg. RTL Group S.A. is a subsidiary of Bertelsmann Capital Holding GmbH.