Viacom (NASDAQ: VIA) and Viacom (NASDAQ:VIAB) are both large-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitabiliy, institutional ownership, valuation and risk.

Volatility and Risk

Viacom has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Viacom has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Viacom and Viacom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 1 8 5 0 2.29
Viacom 5 13 10 0 2.18

Viacom currently has a consensus target price of $43.33, indicating a potential upside of 17.43%. Viacom has a consensus target price of $43.19, indicating a potential upside of 42.91%. Given Viacom’s higher probable upside, analysts clearly believe Viacom is more favorable than Viacom.

Valuation & Earnings

This table compares Viacom and Viacom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Viacom $12.91 billion 1.15 $2.89 billion $3.64 10.14
Viacom $12.91 billion 0.94 $2.89 billion $3.64 8.30

Viacom is trading at a lower price-to-earnings ratio than Viacom, indicating that it is currently the more affordable of the two stocks.

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.2%. Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. Viacom pays out 22.0% of its earnings in the form of a dividend. Viacom pays out 22.0% 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.

Insider and Institutional Ownership

1.9% of Viacom shares are held by institutional investors. Comparatively, 77.3% of Viacom shares are held by institutional investors. 0.7% of Viacom shares are held by company insiders. Comparatively, 0.4% of Viacom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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 11.04% 32.45% 6.39%
Viacom 11.04% 32.45% 6.39%

Summary

Viacom beats Viacom on 5 of the 9 factors compared between the two stocks.

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.

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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