Critical Contrast: Viacom (VIA) & Rentrak (RENT)
Viacom (NASDAQ: VIA) and Rentrak (NASDAQ:RENT) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.
Institutional & Insider Ownership
2.3% of Viacom shares are held by institutional investors. 0.7% of Viacom shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Rentrak does not pay a dividend. Viacom pays out 17.1% of its earnings in the form of a dividend.
This table compares Viacom and Rentrak’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Viacom and Rentrak’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Viacom||$13.26 billion||0.99||$1.87 billion||$4.67||7.00|
Viacom has higher revenue and earnings than Rentrak. Rentrak is trading at a lower price-to-earnings ratio than Viacom, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Viacom and Rentrak, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Viacom currently has a consensus price target of $38.00, suggesting a potential upside of 16.21%. Given Viacom’s higher probable upside, research analysts plainly believe Viacom is more favorable than Rentrak.
Viacom beats Rentrak on 10 of the 11 factors compared between the two stocks.
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.
Rentrak Corporation is a media measurement and consumer targeting company serving the entertainment, television (TV), video and advertising industries. The Company’s Software as a Service (SaaS) technology merges television viewership information from televisions and devices with consumer behavior and purchase information across multiple platforms, devices and distribution channels. The Company’s product offerings, which are referred as Essentials include TV Everywhere, which includes TV Essentials and StationView Essentials; Movies Everywhere, which includes Box Office Essentials, International Box Office Essentials, PostTrak and PreAct; OnDemand Everywhere, which includes OnDemand Essentials, Digital Download Essentials, Multiscreen Essentials and other Over the Top measurement tools and related products, and Other Services, which includes Studio Revenue Share Essentials (SRSE) and other products relating to measurement of physical content in the home video rental industry.
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