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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Twenty-First Century Fox $28.50 billion 1.72 $2.95 billion $1.61 16.48
World Wrestling Entertainment $729.20 million 2.80 $33.84 million $0.46 57.61

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

Insider and Institutional Ownership

23.2% of Twenty-First Century Fox shares are owned by institutional investors. Comparatively, 49.6% of World Wrestling Entertainment shares are owned by institutional investors. 39.4% of Twenty-First Century Fox shares are owned by company insiders. Comparatively, 49.8% of World Wrestling Entertainment 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Twenty-First Century Fox 10.36% 22.47% 7.20%
World Wrestling Entertainment 4.56% 17.05% 6.84%

Volatility & Risk

Twenty-First Century Fox has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, World Wrestling Entertainment has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Twenty-First Century Fox and World Wrestling Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twenty-First Century Fox 0 1 2 0 2.67
World Wrestling Entertainment 0 3 6 0 2.67

Twenty-First Century Fox presently has a consensus price target of $34.00, suggesting a potential upside of 28.11%. World Wrestling Entertainment has a consensus price target of $24.86, suggesting a potential downside of 6.20%. Given Twenty-First Century Fox’s higher probable upside, analysts clearly believe Twenty-First Century Fox is more favorable than World Wrestling Entertainment.

Dividends

Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 1.8%. Twenty-First Century Fox pays out 22.4% of its earnings in the form of a dividend. World Wrestling Entertainment pays out 104.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Twenty-First Century Fox beats World Wrestling Entertainment on 9 of the 15 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.

World Wrestling Entertainment Company Profile

World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.

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