Viacom (NASDAQ: VIA) and Cinedigm Corp (NASDAQ:CIDM) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

2.3% of Viacom shares are owned by institutional investors. Comparatively, 8.7% of Cinedigm Corp shares are owned by institutional investors. 0.7% of Viacom shares are owned by company insiders. Comparatively, 13.9% of Cinedigm Corp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Viacom and Cinedigm Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 1 6 4 0 2.27
Cinedigm Corp 0 0 0 0 N/A

Viacom currently has a consensus price target of $42.86, suggesting a potential upside of 13.68%. Given Viacom’s higher probable upside, analysts plainly believe Viacom is more favorable than Cinedigm Corp.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Viacom $13.17 billion 1.15 $2.92 billion $3.64 10.36
Cinedigm Corp $83.16 million 0.24 $34.79 million ($1.78) -0.83

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.

Dividends

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.

Profitability

This table compares Viacom and Cinedigm Corp’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%
Cinedigm Corp -18.91% N/A -9.94%

Volatility & Risk

Viacom has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Cinedigm Corp has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Summary

Viacom beats Cinedigm Corp on 11 of the 14 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.

Cinedigm Corp Company Profile

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.

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