Taomee Holdings (NYSE: TAOM) and Viacom (NASDAQ:VIA) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitabiliy and dividends.
Insider & Institutional Ownership
1.9% of Viacom shares are held by institutional investors. 0.7% of Viacom shares are held by 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.
Dividends
Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Taomee Holdings does not pay a dividend. Viacom pays out 22.0% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Taomee Holdings and Viacom’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Taomee Holdings | N/A | N/A | N/A | N/A | N/A |
| Viacom | $13.17 billion | 1.19 | $2.92 billion | $3.64 | 10.71 |
Viacom has higher revenue and earnings than Taomee Holdings.
Analyst Ratings
This is a breakdown of current recommendations for Taomee Holdings and Viacom, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Taomee Holdings | 0 | 0 | 0 | 0 | N/A |
| Viacom | 1 | 8 | 5 | 0 | 2.29 |
Viacom has a consensus target price of $43.33, indicating a potential upside of 11.11%. Given Viacom’s higher probable upside, analysts clearly believe Viacom is more favorable than Taomee Holdings.
Profitability
This table compares Taomee Holdings and Viacom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Taomee Holdings | 2.06% | -0.90% | 0.75% |
| Viacom | 11.04% | 30.89% | 6.39% |
Summary
Viacom beats Taomee Holdings on 9 of the 10 factors compared between the two stocks.
About Taomee Holdings
Taomee Holdings Limited is a children’s entertainment and media company in China. The Company is engaged in developing branded entertainment experiences across online and mobile platforms. It has developed branded entertainment franchises, including its major franchises of Mole’s World, Seer and Flower Angel. In addition, the Company also operates the franchise of Canimals in China. The Company’s brands and franchises have expanded into various online and offline platforms, including the virtual worlds, video streaming site, mobile games and applications, social networking, films and cartoon animations, merchandising and toys. The Company provides a portfolio of services and products through two business segments: online business and offline business.
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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