Lions Gate Entertainment Corp. (LGF) & Twenty-First Century Fox (FOX) Critical Contrast
Lions Gate Entertainment Corp. (NYSE: LGF) and Twenty-First Century Fox (NASDAQ:FOX) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
This table compares Lions Gate Entertainment Corp. and Twenty-First Century Fox’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lions Gate Entertainment Corp.||4.89%||10.25%||2.66%|
|Twenty-First Century Fox||10.36%||22.47%||7.20%|
Risk & Volatility
Lions Gate Entertainment Corp. has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Twenty-First Century Fox has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Lions Gate Entertainment Corp. and Twenty-First Century Fox, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lions Gate Entertainment Corp.||0||1||14||0||2.93|
|Twenty-First Century Fox||0||2||1||0||2.33|
Lions Gate Entertainment Corp. currently has a consensus target price of $31.00, indicating a potential upside of 18.82%. Twenty-First Century Fox has a consensus target price of $34.00, indicating a potential upside of 26.44%. Given Twenty-First Century Fox’s higher probable upside, analysts plainly believe Twenty-First Century Fox is more favorable than Lions Gate Entertainment Corp..
Lions Gate Entertainment Corp. pays an annual dividend of $0.27 per share and has a dividend yield of 1.0%. Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. Lions Gate Entertainment Corp. pays out 122.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Twenty-First Century Fox pays out 22.6% of its earnings in the form of a dividend. Twenty-First Century Fox has increased its dividend for 2 consecutive years. Twenty-First Century Fox is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
96.7% of Lions Gate Entertainment Corp. shares are owned by institutional investors. Comparatively, 23.1% of Twenty-First Century Fox shares are owned by institutional investors. 30.4% of Lions Gate Entertainment Corp. shares are owned by insiders. Comparatively, 39.4% of Twenty-First Century Fox shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Lions Gate Entertainment Corp. and Twenty-First Century Fox’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lions Gate Entertainment Corp.||N/A||N/A||N/A||$0.22||118.60|
|Twenty-First Century Fox||$28.50 billion||1.75||$7.11 billion||$1.59||16.91|
Twenty-First Century Fox has higher revenue and earnings than Lions Gate Entertainment Corp.. Twenty-First Century Fox is trading at a lower price-to-earnings ratio than Lions Gate Entertainment Corp., indicating that it is currently the more affordable of the two stocks.
Twenty-First Century Fox beats Lions Gate Entertainment Corp. on 10 of the 14 factors compared between the two stocks.
Lions Gate Entertainment Corp. Company Profile
Lions Gate Entertainment Corp. is engaged in motion picture production and distribution, television programming and syndication, home entertainment, international distribution and sales, branded channel platforms, interactive ventures and games and location-based entertainment. The Company operates through two segments: Motion Pictures and Television Production. The Company’s Motion Pictures segment consists of the development and production of feature films, acquisition of North American and around the world distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and around the world licensing of distribution rights to feature films produced and acquired. The Company’s Television Production segment consists of the development, production and around the world distribution of television productions, including television series, television movies, and mini-series and non-fiction programming.
Twenty-First Century Fox Company Profile
Twenty-First Century Fox, Inc. is a media and entertainment company. The Company’s segments include Cable Network Programming; Television; Filmed Entertainment, and Other, Corporate and Eliminations. The Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, factual entertainment and movie programming for distribution. The Television segment is engaged in the operation of broadcast television stations and the broadcasting of network programming in the United States. The Filmed Entertainment segment is engaged in the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media, and the production and licensing of television programming around the world. The Other, Corporate and Eliminations segment consists primarily of corporate overhead and eliminations, and other businesses.
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