Twenty-First Century Fox (NASDAQ: FOXA) and Taomee Holdings (NYSE:TAOM) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for Twenty-First Century Fox and Taomee Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twenty-First Century Fox 0 5 15 0 2.75
Taomee Holdings 0 0 0 0 N/A

Twenty-First Century Fox currently has a consensus price target of $33.44, indicating a potential upside of 29.68%. Given Twenty-First Century Fox’s higher probable upside, analysts plainly believe Twenty-First Century Fox is more favorable than Taomee Holdings.

Profitability

This table compares Twenty-First Century Fox and Taomee Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twenty-First Century Fox 10.36% 22.46% 7.19%
Taomee Holdings 2.06% -0.90% 0.75%

Institutional & Insider Ownership

53.3% of Twenty-First Century Fox shares are owned by institutional investors. 20.1% of Twenty-First Century Fox shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Taomee Holdings does not pay a dividend. Twenty-First Century Fox pays out 22.6% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Twenty-First Century Fox and Taomee Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Twenty-First Century Fox $28.50 billion 1.68 $7.11 billion $1.59 16.22
Taomee Holdings N/A N/A N/A N/A N/A

Twenty-First Century Fox has higher revenue and earnings than Taomee Holdings.

Summary

Twenty-First Century Fox beats Taomee Holdings on 9 of the 10 factors compared between the two stocks.

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.

Taomee Holdings Company Profile

Taomee Holdings Limited is a children’s entertainment and media company in China. The Company is engaged in developing branded entertainment experiences across online and mobile platforms. It has developed branded entertainment franchises, including its major franchises of Mole’s World, Seer and Flower Angel. In addition, the Company also operates the franchise of Canimals in China. The Company’s brands and franchises have expanded into various online and offline platforms, including the virtual worlds, video streaming site, mobile games and applications, social networking, films and cartoon animations, merchandising and toys. The Company provides a portfolio of services and products through two business segments: online business and offline business.

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