Some stocks have positive traits so obvious that even the most amateur investor could recognize them. When most people start out analyzing companies, they look for items such as revenue growth and share repurchases. More seasoned investors look for improving cash flow, or a low dividend payout ratio. Whether you’re an amateur investor or a professional, CBS Corporation (NYSE:CBS) could be exactly what you’re looking for.
For the amateurs
If you get right down to it, strong revenue growth should be one of the first considerations for the amateur investor. When you compare CBS Corporation (NYSE:CBS)’s performance to its primary competition, the company beats them all.
CBS Corporation (NYSE:CBS) faces some of the most well-known names in entertainment on a day-to-day basis. Companies like Comcast Corporation (NASDAQ:CMCSA), which owns NBCUniversal, The Walt Disney Company (NYSE:DIS), and Time Warner Inc (NYSE:TWX), each have properties that represent direct competition to CBS Corporation (NYSE:CBS).
Whether it’s CBS Corporation (NYSE:CBS) competing against Comcast Corporation (NASDAQ:CMCSA)’s NBC, The Walt Disney Company (NYSE:DIS)’s ABC, or cable networks like Time Warner’s TNT and TBS, these channels all vie for customers’ time. CBS’ Showtime property also has to compete against Time Warner Inc (NYSE:TWX)’s HBO premium channel, so as you can see, the battle comes from all sides. What is really impressive is the company’s ability to grow revenue by 11% in the last quarter in the face of such stiff competition. While Time Warner nearly matched CBS’ performance with a 10% revenue growth rate. Comcast Corporation (NASDAQ:CMCSA)’s 7% increase and Disney’s 4% growth couldn’t keep up.
Many companies give lip service to believing in the value of their stock, but CBS Corporation (NYSE:CBS) has put its money where its mouth is. Even an amateur investor can see a significant decline in the number of diluted shares and know that this should make existing shares more valuable.
On a year-over-year basis, CBS retired more than 5% of its diluted shares, whereas Comcast Corporation (NASDAQ:CMCSA) and Time Warner retired almost 2% and 2.4% respectively. By comparison, Walt Disney recently announced a large share repurchase program of at least $6 billion, yet the company’s diluted shares are actually up slightly compared to last year. Whether it’s revenue growth or share repurchases, you get it with CBS.