Sinclair Broadcast Group (NASDAQ: SBGI) and Phoenix New Media Limited (NYSE:FENG) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Sinclair Broadcast Group and Phoenix New Media Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sinclair Broadcast Group 0 0 5 0 3.00
Phoenix New Media Limited 0 0 1 0 3.00

Sinclair Broadcast Group presently has a consensus target price of $47.00, suggesting a potential upside of 57.72%. Phoenix New Media Limited has a consensus target price of $4.30, suggesting a potential upside of 8.86%. Given Sinclair Broadcast Group’s higher probable upside, equities research analysts clearly believe Sinclair Broadcast Group is more favorable than Phoenix New Media Limited.

Earnings & Valuation

This table compares Sinclair Broadcast Group and Phoenix New Media Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sinclair Broadcast Group $2.82 billion 1.09 $893.47 million $2.90 10.28
Phoenix New Media Limited $210.94 million 1.44 $4.85 million $0.13 30.39

Sinclair Broadcast Group has higher revenue and earnings than Phoenix New Media Limited. Sinclair Broadcast Group is trading at a lower price-to-earnings ratio than Phoenix New Media Limited, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

76.9% of Sinclair Broadcast Group shares are owned by institutional investors. Comparatively, 14.0% of Phoenix New Media Limited shares are owned by institutional investors. 28.2% of Sinclair Broadcast Group shares are owned by insiders. Comparatively, 10.9% of Phoenix New Media Limited shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Sinclair Broadcast Group has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Phoenix New Media Limited has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Dividends

Sinclair Broadcast Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Phoenix New Media Limited does not pay a dividend. Sinclair Broadcast Group pays out 24.8% of its earnings in the form of a dividend.

Profitability

This table compares Sinclair Broadcast Group and Phoenix New Media Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sinclair Broadcast Group 9.70% 32.06% 4.29%
Phoenix New Media Limited 4.39% 3.14% 2.12%

Summary

Sinclair Broadcast Group beats Phoenix New Media Limited on 12 of the 15 factors compared between the two stocks.

About Sinclair Broadcast Group

Sinclair Broadcast Group, Inc. is a television broadcasting company. The Company focuses on providing content on its local television stations and digital platforms. The Company’s segments are broadcast, other and corporate. The Broadcast segment consists of its broadcast television stations. The content distributed through its broadcast platform consists of programming provided by third-party networks and syndicators, local news, it owns networks, and other original programming produced by it. It also owns digital and Internet media products that are complementary to its portfolio of television station related digital properties. It focuses on offering marketing solutions to advertisers. Its other business consists of original networks and content, digital and Internet solutions, technical services and other non-media investments.

About Phoenix New Media Limited

Phoenix New Media Limited is a media company providing content on an integrated platform across Internet, mobile and television channels in China. The Company enables consumers to access professional news and other information, and upload text and images (UGC) on the Internet and through their mobile devices. It also transmits its UGC and in-house produced content to television viewers primarily through Phoenix TV. In addition to professionally produced content, content from Phoenix TV and its in-house produced content, the Company allows its users to UGC to its Websites and mobile applications. It operates in two segments: net advertising services and paid services. It provides its content and services through channels, including ifeng.com channel, video channel and mobile channel, and also transmits its content to television viewers, primarily through Phoenix TV. Together, these channels form a single converged platform providing integrated text, image and video content.

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