ViacomCBS (NASDAQ:VIAC) and The E.W. Scripps (NASDAQ:SSP) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Insider & Institutional Ownership
80.5% of ViacomCBS shares are held by institutional investors. Comparatively, 70.0% of The E.W. Scripps shares are held by institutional investors. 0.3% of ViacomCBS shares are held by company insiders. Comparatively, 2.8% of The E.W. Scripps shares are held 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.
Analyst Ratings
This is a breakdown of recent recommendations for ViacomCBS and The E.W. Scripps, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| ViacomCBS | 8 | 9 | 6 | 0 | 1.91 |
| The E.W. Scripps | 0 | 0 | 3 | 0 | 3.00 |
ViacomCBS currently has a consensus price target of $46.3478, suggesting a potential upside of 22.23%. The E.W. Scripps has a consensus price target of $15.50, suggesting a potential downside of 29.08%. Given ViacomCBS's higher possible upside, equities analysts clearly believe ViacomCBS is more favorable than The E.W. Scripps.
Dividends
ViacomCBS pays an annual dividend of $0.96 per share and has a dividend yield of 2.5%. The E.W. Scripps pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. ViacomCBS pays out 19.2% of its earnings in the form of a dividend. The E.W. Scripps pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ViacomCBS has increased its dividend for 1 consecutive years. ViacomCBS is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares ViacomCBS and The E.W. Scripps' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| ViacomCBS | $27.81 billion | 0.84 | $3.31 billion | $5.01 | 7.57 |
| The E.W. Scripps | $1.42 billion | 1.25 | $-18,380,000.00 | $0.05 | 437.10 |
ViacomCBS has higher revenue and earnings than The E.W. Scripps. ViacomCBS is trading at a lower price-to-earnings ratio than The E.W. Scripps, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ViacomCBS and The E.W. Scripps' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| ViacomCBS | 5.22% | 18.58% | 5.23% |
| The E.W. Scripps | 2.05% | 5.80% | 1.44% |
Risk & Volatility
ViacomCBS has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, The E.W. Scripps has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.
Summary
ViacomCBS beats The E.W. Scripps on 12 of the 17 factors compared between the two stocks.
