Central European Media Enterprises (NASDAQ: CETV) and Sinclair Broadcast Group (NASDAQ:SBGI) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Dividends

Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Central European Media Enterprises does not pay a dividend. Sinclair Broadcast Group pays out 24.8% of its earnings in the form of a dividend.

Institutional & Insider Ownership

28.4% of Central European Media Enterprises shares are owned by institutional investors. Comparatively, 76.9% of Sinclair Broadcast Group shares are owned by institutional investors. 1.8% of Central European Media Enterprises shares are owned by insiders. Comparatively, 28.2% of Sinclair Broadcast Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Central European Media Enterprises has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Sinclair Broadcast Group has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Central European Media Enterprises and Sinclair Broadcast Group, 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
Sinclair Broadcast Group 0 0 5 0 3.00

Central European Media Enterprises currently has a consensus target price of $3.30, indicating a potential downside of 20.48%. Sinclair Broadcast Group has a consensus target price of $47.00, indicating a potential upside of 58.25%. Given Sinclair Broadcast Group’s higher probable upside, analysts clearly believe Sinclair Broadcast Group is more favorable than Central European Media Enterprises.

Earnings and Valuation

This table compares Central European Media Enterprises and Sinclair Broadcast Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Central European Media Enterprises $650.66 million 0.92 $162.63 million ($0.10) -41.50
Sinclair Broadcast Group $2.82 billion 1.08 $893.47 million $2.90 10.24

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

Profitability

This table compares Central European Media Enterprises and Sinclair Broadcast Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Central European Media Enterprises 2.82% -18.46% 1.26%
Sinclair Broadcast Group 9.70% 32.06% 4.29%

Summary

Sinclair Broadcast Group beats Central European Media Enterprises on 13 of the 15 factors compared between the two stocks.

About Central European Media Enterprises

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.

About Sinclair Broadcast Group

Sinclair Broadcast Group, Inc. is a television broadcasting company. The Company focuses on providing content on its local television stations and digital platforms. The Company’s segments are broadcast, other and corporate. The Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform consists of programming provided by third-party networks and syndicators, local news, it owns networks, and other original programming produced by it. It also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.

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