DTS (NASDAQ: DTSI) and Twenty-First Century Fox (NASDAQ:FOX) are both entertainment production – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

98.1% of DTS shares are owned by institutional investors. Comparatively, 23.3% of Twenty-First Century Fox shares are owned by institutional investors. 11.3% of DTS 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, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares DTS and Twenty-First Century Fox’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
DTS N/A N/A N/A ($0.42) N/A
Twenty-First Century Fox $28.50 billion 1.59 $2.95 billion $1.59 15.36

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for DTS and Twenty-First Century Fox, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DTS 0 1 0 0 2.00
Twenty-First Century Fox 0 1 2 0 2.67

DTS currently has a consensus target price of $42.50, indicating a potential upside of Infinity. Twenty-First Century Fox has a consensus target price of $34.00, indicating a potential upside of 39.17%. Given DTS’s higher probable upside, analysts plainly believe DTS is more favorable than Twenty-First Century Fox.

Dividends

Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. DTS does not pay a dividend. Twenty-First Century Fox pays out 22.6% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
DTS 1.17% 1.04% 0.59%
Twenty-First Century Fox 10.36% 22.47% 7.20%

Summary

Twenty-First Century Fox beats DTS on 9 of the 12 factors compared between the two stocks.

DTS Company Profile

DTS, Inc. is an audio technology solutions provider for high-definition entertainment experiences. The Company’s audio solutions are designed to enable recording, delivery and playback of high-definition audio, and are included by licensee customers around the world into a range of consumer electronics devices, including televisions, personal computers (PCs), smartphones, tablets, digital media players (DMPs), set-top-boxes, soundbars, wireless speakers, video game consoles, Blu-ray Disc players, automotive audio systems, audio/video receivers (AVRs), digital versatile disc (DVD)-based products and home theater systems. In the wireless speakers market, the Company maintains a Play-Fi Certified original design manufacturer (ODM) Program. The Company’s market base includes Blu-ray, Home audio video (AV) and Automotive. The Blu-ray market includes standalone players, gaming devices and disc drives included in PCs.

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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