Ross Stores (NASDAQ: ROST) and Viacom (NASDAQ:VIA) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.
This table compares Ross Stores and Viacom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Ross Stores and Viacom, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ross Stores currently has a consensus target price of $82.62, indicating a potential upside of 0.18%. Viacom has a consensus target price of $39.00, indicating a potential upside of 15.38%. Given Viacom’s higher possible upside, analysts clearly believe Viacom is more favorable than Ross Stores.
Volatility and Risk
Ross Stores has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Viacom has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.
Ross Stores pays an annual dividend of $0.90 per share and has a dividend yield of 1.1%. Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. 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.
Insider and Institutional Ownership
90.2% of Ross Stores shares are owned by institutional investors. Comparatively, 2.3% of Viacom shares are owned by institutional investors. 2.3% of Ross Stores shares are owned by company insiders. Comparatively, 0.7% of Viacom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Ross Stores and Viacom’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ross Stores||$14.13 billion||2.21||$1.36 billion||$3.34||24.69|
|Viacom||$13.26 billion||1.03||$1.87 billion||N/A||N/A|
Viacom has lower revenue, but higher earnings than Ross Stores.
Ross Stores beats Viacom on 10 of the 16 factors compared between the two stocks.
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.
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.
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