Paramount vs Universal Which Performs Better?

Paramount and Universal are two major players in the entertainment industry, with both companies having a significant presence in film, television, and theme parks. In terms of their stocks, Paramount's parent company ViacomCBS and Universal's parent company Comcast are publicly traded entities that offer investors the opportunity to profit from the success of their respective entertainment divisions. Both companies have seen fluctuations in their stock prices over the years, influenced by industry trends, box office performance, and corporate developments. Investors interested in the entertainment sector may consider analyzing the financials and performance of Paramount and Universal stocks to make informed investment decisions.

Paramount or Universal?

When comparing Paramount and Universal, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Paramount and Universal.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Paramount has a dividend yield of 1.99%, while Universal has a dividend yield of 7.52%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Paramount reports a 5-year dividend growth of -14.52% year and a payout ratio of -15.70%. On the other hand, Universal reports a 5-year dividend growth of 4.11% year and a payout ratio of 64.59%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Paramount P/E ratio at -5.37 and Universal's P/E ratio at 10.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Paramount P/B ratio is 0.28 while Universal's P/B ratio is 0.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Paramount has seen a 5-year revenue growth of 0.08%, while Universal's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Paramount's ROE at -6.25% and Universal's ROE at 8.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.24 for Paramount and $53.38 for Universal. Over the past year, Paramount's prices ranged from $4.06 to $5.92, with a yearly change of 45.81%. Universal's prices fluctuated between $45.19 and $67.80, with a yearly change of 50.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.