Starz Acquisition (NASDAQ: STRZA) and CBS Corporation (NYSE:CBS) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
This is a breakdown of current recommendations and price targets for Starz Acquisition and CBS Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Starz Acquisition currently has a consensus target price of $36.00, indicating a potential upside of 3.06%. CBS Corporation has a consensus target price of $73.50, indicating a potential upside of 26.22%. Given CBS Corporation’s higher possible upside, analysts plainly believe CBS Corporation is more favorable than Starz Acquisition.
CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Starz Acquisition does not pay a dividend. CBS Corporation pays out 211.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Starz Acquisition has raised its dividend for 5 consecutive years.
Volatility & Risk
Starz Acquisition has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, CBS Corporation has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.
Earnings and Valuation
This table compares Starz Acquisition and CBS Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CBS Corporation||$13.20 billion||1.77||$3.05 billion||$0.34||171.26|
CBS Corporation has higher revenue and earnings than Starz Acquisition. Starz Acquisition is trading at a lower price-to-earnings ratio than CBS Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Starz Acquisition and CBS Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
80.2% of Starz Acquisition shares are owned by institutional investors. Comparatively, 75.1% of CBS Corporation shares are owned by institutional investors. 8.5% of Starz Acquisition shares are owned by company insiders. Comparatively, 1.7% of CBS Corporation shares 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.
CBS Corporation beats Starz Acquisition on 8 of the 14 factors compared between the two stocks.
About Starz Acquisition
Starz Acquisition LLC, formerly Starz, is an integrated media and entertainment company. The Company provides premium subscription video programming in the United States to cable operators, satellite television providers, telecommunications companies and online video providers. The Company’s segments include Starz Networks and Starz Distribution. The Starz Networks segment provides premium subscription video programming to the United States multichannel video programming distributors (MVPDs), including cable operators (such as Comcast and Time Warner Cable), satellite television providers (such as DIRECTV and DISH Network) and telecommunications companies (such as AT&T and Verizon). The Starz Distribution segment includes the operations of its Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution businesses. It also develops, produces and acquires entertainment content and distributes this content to consumers in the United States and throughout the world.
About CBS Corporation
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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