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

Insider & Institutional Ownership

79.2% of Viacom shares are held by institutional investors. Comparatively, 8.7% of Cinedigm Corp shares are held by institutional investors. 0.4% of Viacom shares are held by insiders. Comparatively, 13.9% of Cinedigm Corp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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%

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Cinedigm Corp does not pay a dividend. Viacom pays out 22.0% of its earnings in the form of a dividend.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Viacom $13.17 billion 0.89 $2.92 billion $3.64 8.04
Cinedigm Corp $83.16 million 0.25 $34.79 million ($1.78) -0.87

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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Viacom and Cinedigm Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 5 14 10 0 2.17
Cinedigm Corp 0 0 0 0 N/A

Viacom presently has a consensus price target of $42.08, suggesting a potential upside of 43.73%. Given Viacom’s higher probable upside, equities analysts clearly believe Viacom is more favorable than Cinedigm Corp.

Volatility and Risk

Viacom has a beta of 1.57, suggesting that its share price is 57% 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 12 of the 14 factors compared between the two stocks.

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.

About Cinedigm Corp

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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