Viacom (NASDAQ: VIAB) and Twenty-First Century Fox (NASDAQ:FOXAV) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitabiliy.

Insider & Institutional Ownership

77.4% of Viacom shares are held by institutional investors. 0.4% of Viacom shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Viacom and Twenty-First Century Fox’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 0.96 $2.89 billion $3.64 8.45
Twenty-First Century Fox N/A N/A N/A N/A N/A

Viacom has higher revenue and earnings than Twenty-First Century Fox.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Viacom and Twenty-First Century Fox, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 5 13 10 0 2.18
Twenty-First Century Fox 0 0 0 0 N/A

Viacom currently has a consensus price target of $43.53, indicating a potential upside of 41.47%. Given Viacom’s higher probable upside, research analysts clearly believe Viacom is more favorable than Twenty-First Century Fox.

Profitability

This table compares Viacom and Twenty-First Century Fox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viacom 11.04% 30.89% 6.39%
Twenty-First Century Fox 11.66% 22.16% 7.08%

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. Twenty-First Century Fox does not pay a dividend. Viacom pays out 22.0% of its earnings in the form of a dividend.

Summary

Viacom beats Twenty-First Century Fox on 7 of the 10 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.

Twenty-First Century Fox Company Profile

Twenty-First Century Fox, Inc. is a media and entertainment company. The Company’s segments include Cable Network Programming; Television; Filmed Entertainment, and Other, Corporate and Eliminations. The Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, factual entertainment and movie programming for distribution. The Television segment is engaged in the operation of broadcast television stations and the broadcasting of network programming in the United States. The Filmed Entertainment segment is engaged in the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media, and the production and licensing of television programming around the world. The Other, Corporate and Eliminations segment consists primarily of corporate overhead and eliminations, and other businesses.

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