Critical Analysis: Phoenix New Media Limited (FENG) & CBS Corporation (CBS)
Phoenix New Media Limited (NYSE: FENG) and CBS Corporation (NYSE:CBS) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
Institutional and Insider Ownership
12.3% of Phoenix New Media Limited shares are owned by institutional investors. Comparatively, 75.1% of CBS Corporation shares are owned by institutional investors. 2.0% of CBS Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Phoenix New Media Limited and CBS Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Phoenix New Media Limited||4.39%||3.00%||2.06%|
CBS Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Phoenix New Media Limited does not pay 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. Phoenix New Media Limited has raised its dividend for 5 consecutive years.
Earnings and Valuation
This table compares Phoenix New Media Limited and CBS Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Phoenix New Media Limited||$218.55 million||1.67||$11.05 million||$0.13||36.54|
|CBS Corporation||$13.20 billion||1.94||$3.05 billion||$0.34||187.18|
CBS Corporation has higher revenue and earnings than Phoenix New Media Limited. Phoenix New Media Limited is trading at a lower price-to-earnings ratio than CBS Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Phoenix New Media Limited has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, CBS Corporation has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Phoenix New Media Limited and CBS Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Phoenix New Media Limited||0||0||0||0||N/A|
CBS Corporation has a consensus target price of $73.17, suggesting a potential upside of 14.98%. Given CBS Corporation’s higher possible upside, analysts plainly believe CBS Corporation is more favorable than Phoenix New Media Limited.
CBS Corporation beats Phoenix New Media Limited on 12 of the 16 factors compared between the two stocks.
About Phoenix New Media Limited
Phoenix New Media Limited is a media company providing content on an integrated platform across Internet, mobile and television channels in China. The Company enables consumers to access professional news and other information, and upload text and images (UGC) on the Internet and through their mobile devices. It also transmits its UGC and in-house produced content to television viewers primarily through Phoenix TV. In addition to professionally produced content, content from Phoenix TV and its in-house produced content, the Company allows its users to UGC to its Websites and mobile applications. It operates in two segments: net advertising services and paid services. It provides its content and services through channels, including ifeng.com channel, video channel and mobile channel, and also transmits its content to television viewers, primarily through Phoenix TV. Together, these channels form a single converged platform providing integrated text, image and video content.
About CBS Corporation
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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