Critical Analysis: Grupo Televisa SAB (NYSE:TV) versus ViacomCBS (NYSE:VIAC)

Grupo Televisa SAB (NYSE:TV) and ViacomCBS (NASDAQ:VIAC) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Grupo Televisa SAB and ViacomCBS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grupo Televisa SAB 1 2 1 0 2.00
ViacomCBS 1 6 7 0 2.43

Grupo Televisa SAB presently has a consensus price target of $12.00, indicating a potential upside of 6.86%. ViacomCBS has a consensus price target of $46.82, indicating a potential upside of 33.84%. Given ViacomCBS’s stronger consensus rating and higher possible upside, analysts plainly believe ViacomCBS is more favorable than Grupo Televisa SAB.

Profitability

This table compares Grupo Televisa SAB and ViacomCBS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grupo Televisa SAB 2.29% 2.19% 0.75%
ViacomCBS 18.98% 44.13% 7.94%

Risk & Volatility

Grupo Televisa SAB has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, ViacomCBS has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Institutional & Insider Ownership

48.0% of Grupo Televisa SAB shares are held by institutional investors. Comparatively, 77.8% of ViacomCBS shares are held by institutional investors. 0.6% of ViacomCBS shares are held by company 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.

Valuation and Earnings

This table compares Grupo Televisa SAB and ViacomCBS’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grupo Televisa SAB $5.27 billion 1.23 $313.09 million $0.54 20.80
ViacomCBS $14.51 billion 0.90 $1.96 billion $5.19 6.74

ViacomCBS has higher revenue and earnings than Grupo Televisa SAB. ViacomCBS is trading at a lower price-to-earnings ratio than Grupo Televisa SAB, indicating that it is currently the more affordable of the two stocks.

Dividends

Grupo Televisa SAB pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. ViacomCBS pays an annual dividend of $0.96 per share and has a dividend yield of 2.7%. Grupo Televisa SAB pays out 14.8% of its earnings in the form of a dividend. ViacomCBS pays out 18.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Grupo Televisa SAB has increased its dividend for 1 consecutive years.

Summary

ViacomCBS beats Grupo Televisa SAB on 13 of the 17 factors compared between the two stocks.

Grupo Televisa SAB Company Profile

Grupo Televisa, S.A.B. operates as a media company in the Spanish-speaking world. The company operates through four segments: Content, Sky, Cable, and Other Businesses. The Content segment produces television programming and broadcasts Channels 2, 4, 5, and 9; sells advertising time on programs; provides Internet services; and produces television programming and broadcasting for local television stations in Mexico and the United States. It also offers programming services for cable and pay-per-view television companies in Mexico, other countries in Latin America, the United States, and Europe; and licenses and syndicates television programming. The Sky segment offers direct-to-home broadcast satellite pay television services comprising program, installation, and equipment rental services to subscribers in Mexico, Central America, and the Dominican Republic; and national advertising sales. The Cable segment operates cable multiple system and telecommunication facilities. It provides basic and premium television subscription, pay-per-view, installation, Internet subscription, and telephone services, as well as local and national advertising sales; and data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network. The Other Businesses segment is involved in sports and show business promotion, soccer, feature film production and distribution, gaming, radio, publishing, and publishing distribution businesses. Grupo Televisa, S.A.B. was founded in 1990 and is based in Mexico City, Mexico.

ViacomCBS Company Profile

ViacomCBS Inc. operates as a mass media company worldwide. The company operates in four segments: Entertainment, Cable Networks, Publishing, and Local Media. The Entertainment segment distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; produces, acquires, and/or distributes programming, including series, specials, news, and public affairs; operates online content networks for information and entertainment; produces theatrical films; and digital streaming services. This segment also operates CBS Sports Network, a 24-hour cable program service that provides college sports and related content. The Cable Networks segment offers subscription program services, such as original series, theatrical feature films, documentaries, boxing and other sports-related programming, and special events, as well as a direct-to-consumer digital streaming subscription. This segment also operates Smithsonian Networks, which operates a channel featuring cultural, historical, scientific, and educational programs. The Publishing segment publishes and distributes adult and children's consumer books in printed, digital, and audio formats; develops special imprints and publishes titles based on the products of the company, as well as that of third parties; and distributes products for other publishers. This segment also delivers content; and promotes its products on its Websites, social media, and general Internet sites, as well as those related to individual titles. The Local Media segment owns 29 broadcast television stations; and operates local Websites, including content from its television stations. The company was formerly known as CBS Corporation and changed its name to ViacomCBS Inc. in December 2019. ViacomCBS Inc. was founded in 1986 and is based in New York, New York.

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