CBS Corporation (CBS) vs. Gray Television (GTN) Critical Review
CBS Corporation (NYSE: CBS) and Gray Television (NYSE:GTN) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.
Valuation & Earnings
This table compares CBS Corporation and Gray Television’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CBS Corporation||$13.20 billion||1.73||$3.05 billion||$0.34||167.65|
|Gray Television||$872.25 million||1.26||$332.14 million||$1.60||9.56|
CBS Corporation has higher revenue and earnings than Gray Television. Gray Television is trading at a lower price-to-earnings ratio than CBS Corporation, indicating that it is currently the more affordable of the two stocks.
CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Gray Television does not pay a dividend. CBS Corporation pays out 211.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBS Corporation has raised its dividend for 5 consecutive years.
This is a summary of current recommendations for CBS Corporation and Gray Television, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CBS Corporation presently has a consensus target price of $74.98, suggesting a potential upside of 31.54%. Gray Television has a consensus target price of $18.25, suggesting a potential upside of 19.28%. Given CBS Corporation’s higher possible upside, analysts plainly believe CBS Corporation is more favorable than Gray Television.
Risk & Volatility
CBS Corporation has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Gray Television has a beta of 3.25, suggesting that its share price is 225% more volatile than the S&P 500.
Insider and Institutional Ownership
75.1% of CBS Corporation shares are held by institutional investors. Comparatively, 81.4% of Gray Television shares are held by institutional investors. 1.7% of CBS Corporation shares are held by company insiders. Comparatively, 12.0% of Gray Television shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares CBS Corporation and Gray Television’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CBS Corporation beats Gray Television on 10 of the 17 factors compared between the two stocks.
CBS Corporation Company Profile
CBS Corporation is a mass media company. The Company operates through four segment: Entertainment, Cable Networks, Publishing, Local Media. The Entertainment segment comprises the CBS TV Network; CBS TV Studios; CBS Studios International and CBS TV Distribution; CBS Interactive; CBS Films; and the Company’s digital streaming services, CBS All Access and CBSN. The Cable Networks segment comprises Showtime Networks, which operates its subscription program services, Showtime, The Movie Channel, and Flix. The Publishing segment comprises Simon & Schuster, which publishes and distributes consumer books under imprints such as Simon & Schuster, Pocket Books, Scribner and Gallery Books. The Local Media segment comprises CBS TV Stations, it owns 30 broadcast TV stations; and CBS Local Digital Media. Its businesses span the media and entertainment industries, including the CBS TV Network, cable networks and content production and distribution.
Gray Television Company Profile
Gray Television, Inc. is a television broadcast company. The Company owns and operates television stations and digital assets in various markets across the United States. As of February 21, 2017, the Company owned and/or operated television stations in 54 television markets broadcasting over 200 separate programming streams, including 37 affiliates of the CBS Network (CBS), 29 affiliates of the NBC Network (NBC), 20 affiliates of the ABC Network (ABC) and 15 affiliates of the FOX Network (FOX). In addition to a primary broadcast channel, each of its stations can also broadcast additional secondary digital channels within a market by utilizing the same bandwidth, but with different programming from the primary channel. The Company also broadcasts local news/weather channels in certain of its existing markets. Along with affiliations with ABC, CBS and FOX, the Company’s secondary channels are affiliated with various smaller networks and program services.
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