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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Viacom and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 1 6 4 0 2.27
Viacom Competitors 142 531 1236 31 2.60

Viacom presently has a consensus target price of $42.86, indicating a potential upside of 13.68%. As a group, “Entertainment Production” companies have a potential upside of 19.25%. Given Viacom’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Viacom has less favorable growth aspects than its rivals.

Risk and Volatility

Viacom has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Viacom’s rivals have a beta of 0.91, suggesting that their average share price is 9% less volatile than the S&P 500.

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. 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 rivals, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Viacom 20.45% 53.78% 11.88%
Viacom Competitors 5.12% 12.66% 4.31%

Insider & Institutional Ownership

2.3% of Viacom shares are held by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are held by institutional investors. 0.7% of Viacom shares are held by company insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Viacom and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Viacom $13.17 billion $2.92 billion 10.36
Viacom Competitors $6.27 billion $1.49 billion 42.67

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

Summary

Viacom beats its rivals on 8 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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