Viacom (NASDAQ: VIA) and Viacom (NASDAQ:VIAB) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitabiliy and institutional ownership.
Insider & Institutional Ownership
1.9% of Viacom shares are owned by institutional investors. Comparatively, 76.6% of Viacom shares are owned by institutional investors. 0.7% of Viacom shares are owned by company insiders. Comparatively, 0.4% of Viacom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Viacom has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Viacom has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.
Dividends
Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.3%. Viacom pays out 26.4% of its earnings in the form of a dividend. Viacom pays out 26.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
This table compares Viacom and Viacom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Viacom | 9.32% | 32.00% | 6.20% |
| Viacom | 9.32% | 32.00% | 6.20% |
Analyst Recommendations
This is a summary of current recommendations for Viacom and Viacom, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Viacom | 1 | 8 | 5 | 0 | 2.29 |
| Viacom | 4 | 14 | 10 | 0 | 2.21 |
Viacom currently has a consensus price target of $43.33, indicating a potential upside of 5.56%. Viacom has a consensus price target of $43.08, indicating a potential upside of 21.32%. Given Viacom’s higher possible upside, analysts plainly believe Viacom is more favorable than Viacom.
Valuation & Earnings
This table compares Viacom and Viacom’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Viacom | $12.91 billion | 1.28 | $2.89 billion | $3.03 | 13.55 |
| Viacom | $12.91 billion | 1.10 | $2.89 billion | $3.03 | 11.72 |
Viacom is trading at a lower price-to-earnings ratio than Viacom, indicating that it is currently the more affordable of the two stocks.
Summary
Viacom beats Viacom on 5 of the 9 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.
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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