Will The TV Networks Make Me Money? CBS Corporation (CBS), News Corp (NWSA), The Walt Disney Company (DIS)

CBS is the least diversified of the bunch. Their money is made wholly from TV, Radio and Advertising with a little bit of publishing on the side. 2009 total revenues for CBS were around the $13 billion mark and had grown to $14.24 billion in FY 2011. EPS has also been growing at the company and 2012 is one of the best years yet for CBS. The current P/E at the company is 18 and the company is negatively priced to tangible book, two pretty hefty warning signals for anyone looking to invest over the long term. Debt at CBS isn’t too bad as long term debt to equity sits at 0.58. The last thing to look at is the return on investment figure. Over the last year, CBS’s ROI was 9.6% but the average over 5 years is -8.9%.

Fox is part of News Corp., a worldwide media conglomerate that owns a movie studio, numerous broadcasting venues and the Wall Street Journal. News Corp is expected to see some great growth in the coming years in terms of EPS. FY 2013 is expected to be a boost of 23.5% over FY 2012 and analysts expect to see FY 2014 EPS jump another 14% over the 2013 figure. The current P/E at News Corp. is on the high end at 25.59. Return on equity is at 10.51% at the company and they’re running with a profit margin of 7.89%. The current yield is 0.6% and it has plenty of room to grow.

Disney is the best positioned of the three companies with their theme parks, massive bay of content and huge merchandise sales. Five year EPS growth at Disney is 6.16% per year and revenues have also seen growth of 3.36% per year over the same time period. The P/E ratio is relatively low for a company with so many prospects at 17.4 and long term debt is well managed with a 0.28 long term debt to equity ratio. The five year average return on investment is 9.4%, not too bad for a huge company.

Final Verdict

All three companies are here to stay. Picking the better one is something that will take a bit of researching time. I am an owner of Disney stock and I have been more than happy with the company’s returns over the past few years. I like the look of News Corp. but I think I’d wait for a bigger pullback on the stock before buying any. CBS has some funky numbers that I think I’ll be avoiding for now.

The article Will The TV Networks Make Me Money? originally appeared on Fool.com and is written by Ash Anderson.

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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!