Head-To-Head Survey: Ross Stores (ROST) & Viacom (VIA)

Viacom (NASDAQ: VIA) and Ross Stores (NASDAQ:ROST) are both large-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Viacom and Ross Stores, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 2 1 2 0 2.00
Ross Stores 0 6 18 0 2.75

Viacom currently has a consensus price target of $39.00, indicating a potential upside of 15.21%. Ross Stores has a consensus price target of $82.62, indicating a potential downside of 0.90%. Given Viacom’s higher possible upside, equities research analysts clearly believe Viacom is more favorable than Ross Stores.

Institutional & Insider Ownership

2.3% of Viacom shares are owned by institutional investors. Comparatively, 90.2% of Ross Stores shares are owned by institutional investors. 0.7% of Viacom shares are owned by insiders. Comparatively, 2.4% of Ross Stores shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Viacom has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Ross Stores has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Valuation & Earnings

This table compares Viacom and Ross Stores’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viacom $13.26 billion 1.03 $1.87 billion N/A N/A
Ross Stores $14.13 billion 2.23 $1.36 billion $3.34 24.96

Viacom has higher earnings, but lower revenue than Ross Stores.

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Ross Stores pays an annual dividend of $0.90 per share and has a dividend yield of 1.1%. Ross Stores pays out 26.9% of its earnings in the form of a dividend. Ross Stores has raised its dividend for 11 consecutive years.

Profitability

This table compares Viacom and Ross Stores’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viacom 16.74% 24.97% 6.76%
Ross Stores 9.64% 44.53% 22.75%

Summary

Ross Stores beats Viacom on 10 of the 16 factors compared between the two stocks.

Viacom 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.

Ross Stores Company Profile

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. It primarily offers apparel, accessories, footwear, and home fashions. The company's Ross Dress for Less stores sell its products at department and specialty stores primarily to middle income households; and dd's DISCOUNTS stores sell its products at department and discount stores regular prices to customers from households with moderate income. As of March 12, 2018, it operated 1,432 locations in 38 states, the District of Columbia, and Guam; and 219 dd's DISCOUNTS stores in 17 states. The company was founded in 1982 and is headquartered in Dublin, California.

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


Leave a Reply