Reviewing CBS Corporation (CBS) & Sinclair Broadcast Group (SBGI)

Sinclair Broadcast Group (NASDAQ: SBGI) and CBS Corporation (NYSE:CBS) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Valuation and Earnings

This table compares Sinclair Broadcast Group and CBS Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sinclair Broadcast Group $2.82 billion 1.14 $893.47 million $2.90 10.83
CBS Corporation $13.20 billion 1.74 $3.05 billion $0.34 167.76

CBS Corporation has higher revenue and earnings than Sinclair Broadcast Group. Sinclair Broadcast Group is trading at a lower price-to-earnings ratio than CBS Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

80.9% of Sinclair Broadcast Group shares are owned by institutional investors. Comparatively, 75.1% of CBS Corporation shares are owned by institutional investors. 28.2% of Sinclair Broadcast Group shares are owned by insiders. Comparatively, 1.7% of CBS Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Sinclair Broadcast Group pays out 24.8% of its earnings in the form of a dividend. CBS Corporation 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. Sinclair Broadcast Group has raised its dividend for 5 consecutive years. Sinclair Broadcast Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sinclair Broadcast Group and CBS Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sinclair Broadcast Group 0 0 6 0 3.00
CBS Corporation 0 5 22 0 2.81

Sinclair Broadcast Group presently has a consensus target price of $48.17, suggesting a potential upside of 53.40%. CBS Corporation has a consensus target price of $74.74, suggesting a potential upside of 31.03%. Given Sinclair Broadcast Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Sinclair Broadcast Group is more favorable than CBS Corporation.

Risk and Volatility

Sinclair Broadcast Group has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, CBS Corporation has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Profitability

This table compares Sinclair Broadcast Group and CBS Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sinclair Broadcast Group 9.70% 32.06% 4.29%
CBS Corporation 1.27% 49.51% 7.68%

Summary

Sinclair Broadcast Group beats CBS Corporation on 10 of the 17 factors compared between the two stocks.

Sinclair Broadcast Group Company Profile

Sinclair Broadcast Group, Inc. is a television broadcasting company. The Company focuses on providing content on its local television stations and digital platforms. The Company’s segments are broadcast, other and corporate. The Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform consists of programming provided by third-party networks and syndicators, local news, it owns networks, and other original programming produced by it. It also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.

CBS Corporation 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.

Receive News & Ratings for Sinclair Broadcast Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sinclair Broadcast Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply