Cinedigm Corp (NASDAQ: CIDM) and Viacom (NASDAQ:VIA) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
This table compares Cinedigm Corp and Viacom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Cinedigm Corp has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Viacom has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Institutional and Insider Ownership
8.7% of Cinedigm Corp shares are owned by institutional investors. Comparatively, 2.3% of Viacom shares are owned by institutional investors. 13.9% of Cinedigm Corp shares are owned by company insiders. Comparatively, 0.7% of Viacom shares are owned by company 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.
Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Cinedigm Corp does not pay a dividend. Viacom pays out 22.0% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Cinedigm Corp and Viacom, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Viacom has a consensus price target of $42.86, suggesting a potential upside of 14.59%. Given Viacom’s higher possible upside, analysts clearly believe Viacom is more favorable than Cinedigm Corp.
Earnings and Valuation
This table compares Cinedigm Corp and Viacom’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cinedigm Corp||$83.16 million||0.24||$34.79 million||($1.78)||-0.84|
|Viacom||$13.17 billion||1.14||$2.92 billion||$3.64||10.27|
Viacom has higher revenue and earnings than Cinedigm Corp. Cinedigm Corp is trading at a lower price-to-earnings ratio than Viacom, indicating that it is currently the more affordable of the two stocks.
Viacom beats Cinedigm Corp on 11 of the 14 factors compared between the two stocks.
About Cinedigm Corp
Cinedigm Corp. is a distributor and aggregator of independent movie, television and other short form content managing a library of distribution rights to thousands of titles and episodes released across digital, physical, and home and mobile entertainment platforms. The Company also provides digital cinema assets servicing on over 12,000 domestic and foreign movie screens. It operates through four segments: first digital cinema deployment (Phase I Deployment), the second digital cinema deployment (Phase II Deployment), digital cinema services and media content and entertainment group. It collaborates with producers, brands and other content owners to market, source, curate and distribute content to targeted audiences. It distributes content through existing and emerging digital home entertainment platforms and packaged distribution of DVD and Blu-ray discs to wholesalers and retailers and mortar storefronts. It also operates a branded and curated over-the-top entertainment channels.
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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