Financial Analysis: Viacom, Inc. Class B (VIAB) versus AMC NETWORKS INC Common Stock (AMCX)

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Viacom, Inc. Class B (NASDAQ: AMCX) and AMC NETWORKS INC Common Stock (NASDAQ:AMCX) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Insider and Institutional Ownership

77.6% of Viacom, Inc. Class B shares are held by institutional investors. Comparatively, 86.8% of AMC NETWORKS INC Common Stock shares are held by institutional investors. 1.3% of Viacom, Inc. Class B shares are held by company insiders. Comparatively, 21.0% of AMC NETWORKS INC Common Stock shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Viacom, Inc. Class B pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. AMC NETWORKS INC Common Stock does not pay a dividend. Viacom, Inc. Class B pays out 21.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Viacom, Inc. Class B and AMC NETWORKS INC Common Stock, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom, Inc. Class B 3 18 5 0 2.08
AMC NETWORKS INC Common Stock 1 12 2 0 2.07

Viacom, Inc. Class B presently has a consensus target price of $33.67, suggesting a potential upside of 9.59%. AMC NETWORKS INC Common Stock has a consensus target price of $61.70, suggesting a potential upside of 2.07%. Given Viacom, Inc. Class B’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Viacom, Inc. Class B is more favorable than AMC NETWORKS INC Common Stock.

Profitability

This table compares Viacom, Inc. Class B and AMC NETWORKS INC Common Stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viacom, Inc. Class B 15.65% 23.53% 6.77%
AMC NETWORKS INC Common Stock 17.22% 278.30% 9.74%

Valuation and Earnings

This table compares Viacom, Inc. Class B and AMC NETWORKS INC Common Stock’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viacom, Inc. Class B $13.26 billion 0.93 $1.87 billion $3.77 8.15
AMC NETWORKS INC Common Stock $2.81 billion 1.23 $471.31 million $7.37 8.20

Viacom, Inc. Class B has higher revenue and earnings than AMC NETWORKS INC Common Stock. Viacom, Inc. Class B is trading at a lower price-to-earnings ratio than AMC NETWORKS INC Common Stock, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Viacom, Inc. Class B has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, AMC NETWORKS INC Common Stock has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Summary

AMC NETWORKS INC Common Stock beats Viacom, Inc. Class B on 9 of the 16 factors compared between the two stocks.

Viacom, Inc. Class B Company Profile

Viacom, Inc. operates media brands that create entertainment content worldwide. The company creates television programs, motion pictures, short-form content, games, consumer products, podcasts, live events, and social media experiences. It operates through two segments, Media Networks and Filmed Entertainment. The Media Networks segment provides entertainment content and related branded products for consumers through approximately 300 locally programmed and operated TV channels, including Nickelodeon, Nick Jr., MTV, BET, Comedy Central, SPIKE, VH1, TV Land, CMT, Logo, Channel 5, 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, and MTV Films brands. This segment exhibits motion pictures theatrically through home entertainment, licensing to television and digital platforms, and ancillary activities. The company releases its content through DVDs, Blu-ray discs, transactional video-on-demand, subscription video-on-demand, pay television, cable television, free television, and free video-on-demand, as well as airlines and hotels. Viacom, Inc. is headquartered in New York, New York.

AMC NETWORKS INC Common Stock Company Profile

AMC Networks Inc. owns and operates various cable television's brands delivering content to audiences, and a platform to distributors and advertisers in the United States and internationally. The company operates in two segments, National Networks; and International and Other. The National Networks segment operates five distributed entertainment programming networks under the AMC, WE tv, BBC AMERICA, IFC, and SundanceTV names in high definition and standard definition formats. This segment distributes its networks in the United States through cable and other multichannel video programming distribution platforms, such as direct broadcast satellite and platforms operated by telecommunications providers. The International and Other segment delivers entertaining and acclaimed programming services for subscribers in approximately 140 countries and territories, including Europe, Latin America, the Middle East, and the parts of Asia and Africa. This segment also operates in independent film distribution business that distributes films across various media platforms, including theaters, cable/satellite video on demand, cable network television, streaming/downloading to internet-connected screens, and DVDs. The company also provides subscription streaming services. AMC Networks Inc. was founded in 1980 and is headquartered in New York, New York.

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