Financial Review: Central European Media Enterprises (CETV) and CBS (CBS)

CBS (NYSE: CBS) and Central European Media Enterprises (NASDAQ:CETV) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares CBS and Central European Media Enterprises’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CBS $13.20 billion 1.73 $3.05 billion $0.34 167.35
Central European Media Enterprises $650.66 million 1.06 $162.63 million ($0.10) -47.75

CBS has higher revenue and earnings than Central European Media Enterprises. Central European Media Enterprises is trading at a lower price-to-earnings ratio than CBS, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

75.1% of CBS shares are owned by institutional investors. Comparatively, 28.3% of Central European Media Enterprises shares are owned by institutional investors. 2.0% of CBS shares are owned by company insiders. Comparatively, 1.8% of Central European Media Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

CBS pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Central European Media Enterprises does not pay a dividend. CBS 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. Central European Media Enterprises has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for CBS and Central European Media Enterprises, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBS 0 4 22 0 2.85
Central European Media Enterprises 0 0 0 0 N/A

CBS currently has a consensus price target of $74.98, indicating a potential upside of 31.78%. Given CBS’s higher probable upside, equities research analysts plainly believe CBS is more favorable than Central European Media Enterprises.

Volatility and Risk

CBS has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Central European Media Enterprises has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Profitability

This table compares CBS and Central European Media Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBS 12.56% 57.78% 7.18%
Central European Media Enterprises 2.82% -18.46% 1.26%

Summary

CBS beats Central European Media Enterprises on 13 of the 15 factors compared between the two stocks.

About CBS

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.

About Central European Media Enterprises

Central European Media Enterprises Ltd. (CME Ltd.) is a media and entertainment company operating in Central and Eastern Europe. The Company’s assets are held through a series of Dutch and Curacao holding companies. The Company manages its business on a geographical basis, with six segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia. The Bulgaria segment operated one general entertainment channel, BTV, and five other channels, including BTV CINEMA, BTV COMEDY, RING.BG, BTV ACTION and BTV LADY, as of December 31, 2016. The Croatia segment operated one general entertainment channel, NOVA TV (Croatia), as of December 31, 2016. The Czech Republic segment operated one general entertainment channel, TV NOVA (Czech Republic), as of December 31, 2016. The Romania segment operated one general entertainment channel, PRO TV, as of December 31, 2016. The Slovak Republic segment operated one general entertainment channel, TV MARKIZA, as of December 31, 2016.

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