DHX Media (NASDAQ: DHXM) and Twenty-First Century Fox (NASDAQ:FOXA) are both cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

53.3% of Twenty-First Century Fox shares are owned by institutional investors. 20.3% of Twenty-First Century Fox shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for DHX Media and Twenty-First Century Fox, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DHX Media 0 3 4 0 2.57
Twenty-First Century Fox 0 5 16 0 2.76

DHX Media currently has a consensus price target of $9.13, suggesting a potential upside of 128.13%. Twenty-First Century Fox has a consensus price target of $33.53, suggesting a potential upside of 24.40%. Given DHX Media’s higher possible upside, analysts plainly believe DHX Media is more favorable than Twenty-First Century Fox.

Dividends

DHX Media pays an annual dividend of $0.06 per share and has a dividend yield of 1.5%. Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. DHX Media pays out 85.7% 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.

Profitability

This table compares DHX Media and Twenty-First Century Fox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DHX Media 4.46% 5.05% 1.91%
Twenty-First Century Fox 10.36% 22.46% 7.19%

Valuation and Earnings

This table compares DHX Media 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
DHX Media $235.62 million 2.27 $53.05 million $0.07 57.14
Twenty-First Century Fox $28.50 billion 1.75 $7.11 billion $1.59 16.95

Twenty-First Century Fox has higher revenue and earnings than DHX Media. Twenty-First Century Fox is trading at a lower price-to-earnings ratio than DHX Media, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

DHX Media has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Twenty-First Century Fox has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Summary

Twenty-First Century Fox beats DHX Media on 12 of the 16 factors compared between the two stocks.

DHX Media Company Profile

DHX Media Ltd is a Canada-based creator, producer, distributor, licensor and broadcaster of kids and family television and film productions. The Company develops, produces and distributes films and television programs for the domestic and international market, broadcasts films and television programs for the domestic markets, as well, the Company manages copyrights, licensing and brands for third parties. It operates through three segments being: Content Business, Copyright Promotions Licensing Group Ltd. (CPLG) and 8504601 Canada Inc. (DHX Television). The Content Business segment includes production, distribution and merchandising operations. The CPLG segment manages copyrights, licensing and brands for third parties. It has five business lines: production (including production service); library and distribution (including digital distribution) of its third party acquired titles; television broadcasting; merchandising and licensing, and new media and interactive.

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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