DHX Media (NASDAQ: DHXM) and Viacom (NASDAQ:VIA) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.
Risk & Volatility
DHX Media has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Viacom has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for DHX Media and Viacom, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DHX Media presently has a consensus price target of $9.13, suggesting a potential upside of 64.74%. Viacom has a consensus price target of $42.86, suggesting a potential upside of 13.68%. Given DHX Media’s stronger consensus rating and higher probable upside, research analysts plainly believe DHX Media is more favorable than Viacom.
DHX Media pays an annual dividend of $0.06 per share and has a dividend yield of 1.1%. Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. DHX Media pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Viacom pays out 22.0% of its earnings in the form of a dividend. Viacom is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
2.3% of Viacom shares are owned by institutional investors. 0.7% of Viacom shares are owned 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.
Earnings and Valuation
This table compares DHX Media and Viacom’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DHX Media||$225.82 million||3.29||$50.85 million||$0.07||79.13|
|Viacom||$13.17 billion||1.15||$2.92 billion||$3.64||10.36|
Viacom has higher revenue and earnings than DHX Media. Viacom is trading at a lower price-to-earnings ratio than DHX Media, indicating that it is currently the more affordable of the two stocks.
This table compares DHX Media and Viacom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Viacom beats DHX Media on 11 of the 16 factors compared between the two stocks.
About DHX Media
DHX Media Ltd is a Canada-based creator, producer, distributor, licensor and broadcaster of kids and family television and film productions. The Company develops, produces and distributes films and television programs for the domestic and international market, broadcasts films and television programs for the domestic markets, as well, the Company manages copyrights, licensing and brands for third parties. It operates through three segments being: Content Business, Copyright Promotions Licensing Group Ltd. (CPLG) and 8504601 Canada Inc. (DHX Television). The Content Business segment includes production, distribution and merchandising operations. The CPLG segment manages copyrights, licensing and brands for third parties. It has five business lines: production (including production service); library and distribution (including digital distribution) of its third party acquired titles; television broadcasting; merchandising and licensing, and new media and interactive.
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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