Critical Comparison: FunctionX (FNCX) versus Lions Gate Entertainment Corp. (LGF)
FunctionX (NASDAQ: FNCX) and Lions Gate Entertainment Corp. (NYSE:LGF) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
This table compares FunctionX and Lions Gate Entertainment Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lions Gate Entertainment Corp.||17.36%||26.35%||7.85%|
Earnings & Valuation
This table compares FunctionX and Lions Gate Entertainment Corp.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FunctionX||$3.13 million||0.06||-$10.43 million||N/A||N/A|
|Lions Gate Entertainment Corp.||N/A||N/A||N/A||$0.22||118.60|
Lions Gate Entertainment Corp. has higher revenue, but lower earnings than FunctionX.
Risk and Volatility
FunctionX has a beta of -0.62, indicating that its stock price is 162% less volatile than the S&P 500. Comparatively, Lions Gate Entertainment Corp. has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.
Lions Gate Entertainment Corp. pays an annual dividend of $0.27 per share and has a dividend yield of 1.0%. FunctionX does not pay a dividend. 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. FunctionX has raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
1.6% of FunctionX shares are owned by institutional investors. Comparatively, 96.7% of Lions Gate Entertainment Corp. shares are owned by institutional investors. 66.9% of FunctionX shares are owned by company insiders. Comparatively, 30.4% of Lions Gate Entertainment Corp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for FunctionX and Lions Gate Entertainment Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lions Gate Entertainment Corp.||0||2||14||0||2.88|
Lions Gate Entertainment Corp. has a consensus target price of $32.00, suggesting a potential upside of 22.65%. Given Lions Gate Entertainment Corp.’s higher possible upside, analysts plainly believe Lions Gate Entertainment Corp. is more favorable than FunctionX.
Lions Gate Entertainment Corp. beats FunctionX on 8 of the 12 factors compared between the two stocks.
Function(x) Inc., formerly DraftDay Fantasy Sports, Inc., is a diversified media and entertainment company. The Company conducts three lines of businesses, which are digital publishing through Wetpaint.com, Inc. (Wetpaint) and Rant, Inc. (Rant); fantasy sports gaming through DraftDay Gaming Group, Inc. (DDGG), and digital content distribution through Choose Digital, Inc. (Choose Digital). The Company’s segments include Wetpaint, which is a media channel reporting original news stories and publishing information content covering television shows, music, celebrities, entertainment news and fashion; Choose Digital, which is a business-to-business platform for delivering digital content; DDGG, which is a business-to-business operator of daily fantasy sports, and Other. The Company’s digital publishing business also includes Rant, which is a digital publisher that publishes original content in over 13 verticals, such as in sports, entertainment, pets, cars and food.
About Lions Gate Entertainment Corp.
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.
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