NEW YORK ( TheStreet) -- CBS ( CBS) and Viacom ( VIA) are expected to have the highest returns on invested capital among the major media and entertainment stocks in 2011, analyst Laura Martin of Needham Insights said in a research report. Martin measures the return on invested capital, or ROIC, among the companies in the entertainment and media industry to find the how efficient they are in using capital to generate profits. "There is typically an 80% to 90% statistical correlation between U.S. entertainment company valuations and their year-forward returns on invested capital," she said in her Jan. 21 report. She found that in 2010, ROIC momentum among media stocks was strong as the market saw a rebound in advertising spending. Cash from operations grew between 24% and 94% year-over-year for most entertainment and media companies while earnings before interest, taxes, depreciation, and amortization rose between 11% and 41%, with companies that rely heavily on advertising, like CBS and Viacom, at the high end of that range. Martin looks at the companies' free cash flow, as share price performance often mirrors trends in free cash flow momentum. CBS's free cash flow was up 94% in 2010, Viacom's was up 57% and News Corporation's ( NWSA) was up 37%. The weakest free cash flow was reported by Time Warner ( TWX), which saw a 6% drop in 2010. She projects that in 2011, Viacom will use only 4% of capital spending to drive EBITDA growth, while Disney ( DIS) will use the most of the media stocks at 35%.