Reviewing Viacom (NASDAQ:VIA) and Childrens Place (PLCE)

Viacom (NASDAQ:VIA) and Childrens Place (NASDAQ:PLCE) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Viacom and Childrens Place, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 2 1 1 0 1.75
Childrens Place 0 3 10 0 2.77

Viacom presently has a consensus price target of $36.00, suggesting a potential upside of 0.56%. Childrens Place has a consensus price target of $148.91, suggesting a potential upside of 16.18%. Given Childrens Place’s stronger consensus rating and higher possible upside, analysts clearly believe Childrens Place is more favorable than Viacom.

Earnings and Valuation

This table compares Viacom and Childrens Place’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viacom $13.26 billion 1.09 $1.87 billion N/A N/A
Childrens Place $1.87 billion 1.12 $84.69 million $7.91 16.20

Viacom has higher revenue and earnings than Childrens Place.

Insider & Institutional Ownership

2.2% of Viacom shares are held by institutional investors. 0.7% of Viacom shares are held by company insiders. Comparatively, 3.8% of Childrens Place shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Viacom and Childrens Place’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viacom 15.65% 23.53% 6.77%
Childrens Place 3.76% 33.17% 15.13%

Volatility and Risk

Viacom has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Childrens Place has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.2%. Childrens Place pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. Childrens Place pays out 25.3% of its earnings in the form of a dividend. Childrens Place has raised its dividend for 3 consecutive years.

Summary

Childrens Place beats Viacom on 9 of the 16 factors compared between the two stocks.

About Viacom

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.

About Childrens Place

The Children’s Place, Inc. engages in the provision of apparel, accessories and footwear for children. It also designs, contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Place and Baby Place. The company was founded in 1969 and is headquartered in Secaucus, NJ.

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