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

Analyst Recommendations

This is a breakdown of recent ratings for Viacom and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 5 14 9 0 2.14
Viacom Competitors 142 532 1239 31 2.60

Viacom presently has a consensus target price of $41.83, indicating a potential upside of 50.89%. As a group, “Entertainment Production” companies have a potential upside of 20.64%. Given Viacom’s higher possible upside, research analysts clearly believe Viacom is more favorable than its peers.

Insider and Institutional Ownership

79.2% of Viacom shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are owned by institutional investors. 0.4% of Viacom shares are owned by company insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Viacom 11.04% 30.89% 6.39%
Viacom Competitors 4.62% 11.46% 4.02%

Risk and Volatility

Viacom has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Viacom’s peers have a beta of 0.91, meaning that their average stock price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares Viacom and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Viacom $13.17 billion $2.92 billion 7.62
Viacom Competitors $6.27 billion $1.49 billion 46.07

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

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. 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 peers, given its higher yield and lower payout ratio.

Summary

Viacom beats its peers on 10 of the 15 factors compared.

Viacom Company Profile

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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