TEGNA (NYSE:TGNA) and CBS (NYSE:CBS.A) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Risk and Volatility
TEGNA has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, CBS has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
TEGNA pays an annual dividend of $0.28 per share and has a dividend yield of 2.2%. CBS pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. TEGNA pays out 25.9% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares TEGNA and CBS’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TEGNA||$1.90 billion||1.43||$273.74 million||$1.08||11.69|
|CBS||$13.69 billion||1.47||$357.00 million||N/A||N/A|
CBS has higher revenue and earnings than TEGNA.
This is a summary of current ratings and recommmendations for TEGNA and CBS, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TEGNA presently has a consensus target price of $14.64, suggesting a potential upside of 15.89%. Given TEGNA’s higher possible upside, equities research analysts clearly believe TEGNA is more favorable than CBS.
Institutional and Insider Ownership
93.6% of TEGNA shares are owned by institutional investors. Comparatively, 1.7% of CBS shares are owned by institutional investors. 0.4% of TEGNA shares are owned by insiders. Comparatively, 2.2% of CBS shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares TEGNA and CBS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TEGNA Inc., a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products. The company also sells commercial advertising spots of its television stations. In addition, it operates Premion, an over the top local advertising network; Hatch, a centralized 360-degree marketing services agency; and radio broadcast stations. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in McLean, Virginia.
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.
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