CBS (CBS) & Grupo Televisa SAB (TV) Critical Analysis

CBS (NYSE: CBS) and Grupo Televisa SAB (NYSE:TV) are both large-cap cyclical consumer goods & services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
CBS 2.14% 58.49% 7.60%
Grupo Televisa SAB 4.85% 4.62% 1.55%

Volatility & Risk

CBS has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Grupo Televisa SAB has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CBS and Grupo Televisa SAB, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBS 0 5 22 0 2.81
Grupo Televisa SAB 0 3 3 0 2.50

CBS currently has a consensus price target of $72.16, suggesting a potential upside of 26.86%. Grupo Televisa SAB has a consensus price target of $26.00, suggesting a potential upside of 34.65%. Given Grupo Televisa SAB’s higher probable upside, analysts plainly believe Grupo Televisa SAB is more favorable than CBS.

Dividends

CBS pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Grupo Televisa SAB pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. CBS pays out 20.9% of its earnings in the form of a dividend. Grupo Televisa SAB pays out 19.5% 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. CBS has increased its dividend for 6 consecutive years. CBS is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBS $13.17 billion 1.73 $1.26 billion $3.44 16.53
Grupo Televisa SAB $5.17 billion 2.14 $199.46 million $0.41 47.10

CBS has higher revenue and earnings than Grupo Televisa SAB. CBS 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.

Institutional and Insider Ownership

74.8% of CBS shares are owned by institutional investors. Comparatively, 57.9% of Grupo Televisa SAB shares are owned by institutional investors. 2.0% of CBS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

CBS beats Grupo Televisa SAB on 12 of the 17 factors compared between the two stocks.

CBS Company Profile

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.

Grupo Televisa SAB Company Profile

Grupo Televisa, S.A.B. is a media company in the international entertainment business. The Company operates in four business segments: Content, Sky, Telecommunications, and Other Businesses. It operates four broadcast channels in Mexico City and has affiliated stations throughout the country. It produces pay-television channels with national and international feeds, throughout Latin America, the United States, Canada, Europe and Asia Pacific. It exports its programs and formats to television networks around the world. It is also a Spanish-language magazine publisher. Its pay-television channels include three music, six movie, seven variety and entertainment channels and two sports channels. Its programs include telenovelas, newscasts, situation comedies, game shows, reality shows, children’s programs, comedy and variety programs, musical and cultural events, movies and educational programming. Its programming also includes broadcasts of special events and sports events in Mexico.

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