Analyzing CBS (CBS) & Directv (DTV)
Directv (NASDAQ: DTV) and CBS (NYSE:CBS) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Institutional and Insider Ownership
74.8% of CBS shares are held by institutional investors. 1.7% of CBS shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for Directv and CBS, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CBS has a consensus price target of $71.96, suggesting a potential upside of 22.17%.
This table compares Directv and CBS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Directv and CBS’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CBS||$13.17 billion||1.79||$1.26 billion||$0.73||80.68|
CBS has higher revenue and earnings than Directv. Directv is trading at a lower price-to-earnings ratio than CBS, indicating that it is currently the more affordable of the two stocks.
CBS pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Directv does not pay a dividend. CBS pays out 98.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CBS has raised its dividend for 6 consecutive years.
CBS beats Directv on 7 of the 11 factors compared between the two stocks.
DIRECTV is a provider of digital television entertainment in the United States and Latin America. The Company operates two direct-to-home (DTH) business units: DIRECTV U.S. and DIRECTV Latin America, which are engaged in acquiring, promoting, selling and distributing digital entertainment programming primarily through satellite to residential and commercial subscribers. In addition, the Company owns and operates two regional sports networks, and also owns non-controlling interests in two others, ROOT SPORTS Northwest and ROOT SPORTS Houston. The Company’s reportable segments include DIRECTV U.S., Sky Brasil and PanAmericana, which are engaged in acquiring, promoting, selling and distributing digital entertainment programming, and the Sports Networks, Eliminations and Other segment, which includes its regional sports networks that provide programming to local professional sports teams and college sporting events and locally produce their own programming.
CBS Corporation is a mass media company. The Company operates through four segment: Entertainment, Cable Networks, Publishing, Local Media. The Entertainment segment comprises the CBS TV Network; CBS TV Studios; CBS Studios International and CBS TV Distribution; CBS Interactive; CBS Films; and the Company’s digital streaming services, CBS All Access and CBSN. The Cable Networks segment comprises Showtime Networks, which operates its subscription program services, Showtime, The Movie Channel, and Flix. The Publishing segment comprises Simon & Schuster, which publishes and distributes consumer books under imprints such as Simon & Schuster, Pocket Books, Scribner and Gallery Books. The Local Media segment comprises CBS TV Stations, it owns 30 broadcast TV stations; and CBS Local Digital Media. Its businesses span the media and entertainment industries, including the CBS TV Network, cable networks and content production and distribution.
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