CTC Media, Inc. (CTCM), Regal Entertainment Group (RGC), World Wrestling Entertainment, Inc. (WWE): Profitable and High Yielding Media Stocks

Regal Entertainment Group (NYSE:RGC) has been quite profitable with an operating margin of 12.4% and the return on capital of more than 25%. At $17 per share, Regal Entertainment Group (NYSE:RGC) is worth around $2.65 billion on the market. The market values the company at 8.5 times EV/EBITDA. Income investors might like Regal Entertainment Group (NYSE:RGC) with its juicy dividend yield at 4.9%.

Super-strong balance sheet with the highest yield

World Wrestling Entertainment, Inc. (NYSE:WWE) is an integrated media and entertainment business, operating in four main business segments: Live and Televised Entertainment, Consumer Products, Digital Media, and World Wrestling Entertainment, Inc. (NYSE:WWE) Studios. The majority of its revenue, $353.8 million, or 73% of the total 2012 revenue, was derived from Live and Televised Entertainment, while Consumer Products ranked second with $87.7 million in revenue. Those two segments are the biggest profit contributors, generating $118.2 million and $47.8 million in profit, respectively.

What I like about World Wrestling is its super strong balance sheet. As of December 2012, it had $295 million in total stockholders’ equity, $152 million in cash and short-term investments, and no debt. Its return on capital stayed at around 16.6%. World Wrestling Entertainment, Inc. (NYSE:WWE) is trading around $9 per share, with a total market cap of around $649 million. It is valued at 7.7 times EV/EBITDA. Among the three companies, World Wrestling Entertainment, Inc. (NYSE:WWE) offers investors the highest dividend yield at 5.3%.

My Foolish take

Investors need to dig deeper to find out whether or not these three companies are suitable for their investment portfolios. Personally, I think these companies are quite attractive to income investors due to their high dividend yield, double-digit return on capital, and reasonable valuations.

The article Profitable and High Yielding Media Stocks originally appeared on Fool.com and is written by Anh Hoang.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.