Viacom (NASDAQ: VIAB) is one of 25 publicly-traded companies in the “Entertainment Production” industry, but how does it weigh in compared to its competitors? We will compare Viacom to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Analyst Recommendations

This is a summary of recent ratings and target prices for Viacom and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 5 13 8 0 2.12
Viacom Competitors 102 475 1226 24 2.64

Viacom currently has a consensus target price of $41.14, indicating a potential upside of 51.52%. As a group, “Entertainment Production” companies have a potential upside of 12.85%. Given Viacom’s higher possible upside, analysts clearly believe Viacom is more favorable than its competitors.

Valuation & Earnings

This table compares Viacom and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Viacom $13.17 billion $2.92 billion 7.46
Viacom Competitors $6.27 billion $1.49 billion 150.82

Viacom has higher revenue and earnings than its competitors. Viacom is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Viacom has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Viacom’s competitors have a beta of 0.92, indicating that their average share price is 8% less volatile than the S&P 500.

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Viacom pays out 22.0% of its earnings in the form of a dividend. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.9% of their earnings in the form of a dividend. Viacom is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

79.2% of Viacom shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are owned by institutional investors. 0.4% of Viacom shares are owned by insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are owned 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.

Profitability

This table compares Viacom and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viacom 11.04% 30.89% 6.39%
Viacom Competitors 2.73% 10.89% 3.54%

Summary

Viacom beats its competitors on 10 of the 15 factors compared.

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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