Head to Head Analysis: CBS (CBS) vs. Sinclair Broadcast Group (SBGI)

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CBS $13.20 billion 1.72 $3.05 billion $0.34 166.65
Sinclair Broadcast Group $2.82 billion 1.09 $893.47 million $2.90 10.36

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

Dividends

CBS pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. CBS 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 pays out 24.8% of its earnings in the form of a dividend. CBS has raised its dividend for 5 consecutive years. Sinclair Broadcast Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and price targets for CBS and Sinclair Broadcast Group, as reported by MarketBeat.

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

CBS presently has a consensus price target of $74.98, suggesting a potential upside of 32.33%. Sinclair Broadcast Group has a consensus price target of $48.60, suggesting a potential upside of 61.73%. Given Sinclair Broadcast Group’s stronger consensus rating and higher probable upside, analysts plainly believe Sinclair Broadcast Group is more favorable than CBS.

Volatility & Risk

CBS has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Sinclair Broadcast Group has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Insider & Institutional Ownership

75.1% of CBS shares are owned by institutional investors. Comparatively, 80.9% of Sinclair Broadcast Group shares are owned by institutional investors. 2.0% of CBS shares are owned by company insiders. Comparatively, 28.2% of Sinclair Broadcast Group shares are owned by company 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.

Profitability

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

Net Margins Return on Equity Return on Assets
CBS 12.56% 57.78% 7.18%
Sinclair Broadcast Group 9.70% 32.06% 4.29%

Summary

CBS beats Sinclair Broadcast Group on 9 of the 17 factors compared between the two stocks.

CBS 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.

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.

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