Central European Media Enterprises (NASDAQ: CETV) and News Corporation (NASDAQ:NWSA) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitabiliy, dividends, institutional ownership and risk.

Valuation and Earnings

This table compares Central European Media Enterprises and News Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Central European Media Enterprises $644.02 million 0.96 $155.03 million ($1.15) -3.74
News Corporation $8.29 billion 0.95 $736.00 million ($0.39) -34.77

News Corporation has higher revenue and earnings than Central European Media Enterprises. News Corporation is trading at a lower price-to-earnings ratio than Central European Media Enterprises, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Central European Media Enterprises has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, News Corporation has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Central European Media Enterprises and News Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central European Media Enterprises 0 0 2 0 3.00
News Corporation 1 2 1 0 2.00

Central European Media Enterprises presently has a consensus price target of $3.30, indicating a potential downside of 23.26%. News Corporation has a consensus price target of $14.75, indicating a potential upside of 8.78%. Given News Corporation’s higher probable upside, analysts plainly believe News Corporation is more favorable than Central European Media Enterprises.

Profitability

This table compares Central European Media Enterprises and News Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Central European Media Enterprises -23.43% N/A -0.05%
News Corporation -2.64% 1.77% 1.36%

Dividends

News Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Central European Media Enterprises does not pay a dividend. News Corporation pays out -51.3% of its earnings in the form of a dividend.

Institutional and Insider Ownership

29.0% of Central European Media Enterprises shares are owned by institutional investors. Comparatively, 92.9% of News Corporation shares are owned by institutional investors. 1.1% of Central European Media Enterprises shares are owned by insiders. Comparatively, 13.9% of News Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

News Corporation beats Central European Media Enterprises on 12 of the 15 factors compared between the two stocks.

Central European Media Enterprises Company Profile

Central European Media Enterprises Ltd. (CME Ltd.) is a media and entertainment company operating in Central and Eastern Europe. The Company’s assets are held through a series of Dutch and Curacao holding companies. The Company manages its business on a geographical basis, with six segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia. The Bulgaria segment operated one general entertainment channel, BTV, and five other channels, including BTV CINEMA, BTV COMEDY, RING.BG, BTV ACTION and BTV LADY, as of December 31, 2016. The Croatia segment operated one general entertainment channel, NOVA TV (Croatia), as of December 31, 2016. The Czech Republic segment operated one general entertainment channel, TV NOVA (Czech Republic), as of December 31, 2016. The Romania segment operated one general entertainment channel, PRO TV, as of December 31, 2016. The Slovak Republic segment operated one general entertainment channel, TV MARKIZA, as of December 31, 2016.

News Corporation Company Profile

News Corporation is a diversified media and information services company. The Company operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other. The Company’s business consists of range of media, including news and information services, sports programming in Australia, digital real estate services, book publishing, and pay-television (TV) distribution in Australia, that are distributed under the brands, including The Wall Street Journal, Dow Jones, Herald Sun, The Sun, The Times, HarperCollins Publishers, FOX SPORTS Australia and realestate.com.au. The Company is a developing provider of digital education content, assessment and delivery services. The Company’s business component includes News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, Amplify and Foxtel. In July 2014, it completed the acquisition of Harlequin Enterprises from Torstar Corp.

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