Head to Head Analysis: Viacom (VIAB) vs. Charter Communications (CHTR)

Viacom (NASDAQ:VIAB) and Charter Communications (NASDAQ:CHTR) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Viacom and Charter Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viacom $12.94 billion 0.89 $1.72 billion $4.12 6.94
Charter Communications $43.63 billion 1.93 $1.23 billion $5.22 72.28



Viacom has higher earnings, but lower revenue than Charter Communications. Viacom is trading at a lower price-to-earnings ratio than Charter Communications, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Viacom and Charter Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 0 8 8 0 2.50
Charter Communications 1 5 8 1 2.60

Viacom currently has a consensus target price of $34.29, suggesting a potential upside of 19.88%. Charter Communications has a consensus target price of $364.20, suggesting a potential downside of 3.47%. Given Viacom’s higher possible upside, equities research analysts clearly believe Viacom is more favorable than Charter Communications.

Risk & Volatility

Viacom has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Charter Communications has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Profitability

This table compares Viacom and Charter Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viacom 12.63% 22.60% 7.38%
Charter Communications 2.98% 2.94% 0.90%

Insider and Institutional Ownership

81.4% of Viacom shares are held by institutional investors. Comparatively, 74.5% of Charter Communications shares are held by institutional investors. 1.3% of Viacom shares are held by company insiders. Comparatively, 0.8% of Charter Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Charter Communications does not pay a dividend. Viacom pays out 19.4% of its earnings in the form of a dividend.

Summary

Viacom beats Charter Communications on 9 of the 16 factors compared between the two stocks.

Viacom Company Profile

Viacom Inc. operates media brands that create entertainment content worldwide. It operates through two segments, Media Networks and Filmed Entertainment. The Media Networks segment offers entertainment content, services, and related branded products for consumers through approximately 314 locally programmed and operated television channels, including Nickelodeon, MTV, BET, Comedy Central, Paramount Network, Nick Jr., VH1, TV Land, CMT, Logo, Channel 5, Milkshake!, Telefe, Colors, Paramount Channel, TeenNick, Nicktoons, Nick Music, MTV2, MTV Classic, MTV Live, BET Her, BET Gospel, and BET Hip Hop, as well as through online, mobile, and apps. The Filmed Entertainment segment produces, finances, acquires, and distributes motion pictures, television programming, and other entertainment content under the Paramount Pictures, Paramount Players, Paramount Animation, Paramount Television, Nickelodeon Movies, MTV Films, and BET Films brands. It exhibits motion pictures theatrically through home entertainment, licensing to television and digital platforms, and ancillary activities, as well as DVDs and Blu-ray discs, TVOD, pay television, SVOD, cable, and free television; and airlines and hotels. The company is headquartered in New York, New York.

Charter Communications Company Profile

Charter Communications, Inc., through its subsidiaries, provides cable services to residential and commercial customers in the United States. It offers subscription-based video services, including video on demand, high definition television, digital video recorder, pay-per-view, and spectrum mobile and spectrum guide services, as well as ad-supported free online video products. The company also provides Internet services, such as security suite that protects computers from viruses and spyware; in-home WiFi, which permits customers to lease high performance wireless routers to enhance their in-home wireless Internet experience; out-of-home WiFi; Spectrum WiFi; parental control features; and residential Internet services. In addition, it offers voice communications services using voice over Internet protocol technology; and broadband communications solutions, such as Internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. Further, the company provides video programming and digital music channels, Web hosting, email and security, and multi-line telephone services, as well as Web-based service management; sells local advertising across various platforms for networks, such as MTV, CNN, and ESPN; Audience App for optimizes linear inventory; and sells video and online advertising inventory to local, regional, and national advertising customers. Additionally, it offers fiber-delivered communications and managed information technology solutions; data connectivity services to mobile and wireline carriers, and other competitive carriers on a wholesale basis; and owns and operates regional sports networks and local sports, news, and lifestyle channels. As of December 31, 2018, the company served approximately 28.1 million residential and business customers. Charter Communications, Inc. was founded in 1999 and is based in Stamford, Connecticut.

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