Analyzing Viacom (VIAB) & Function(x) (FNCX)

Viacom (NASDAQ: VIAB) and Function(x) (OTCMKTS:FNCX) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations for Viacom and Function(x), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viacom 5 16 8 0 2.10
Function(x) 0 0 0 0 N/A

Viacom presently has a consensus price target of $36.52, indicating a potential upside of 28.59%. Given Viacom’s higher possible upside, analysts clearly believe Viacom is more favorable than Function(x).

Valuation & Earnings

This table compares Viacom and Function(x)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viacom $13.26 billion 0.86 $1.87 billion $4.67 6.08
Function(x) $4.51 million 0.56 -$61.86 million N/A N/A

Viacom has higher revenue and earnings than Function(x).

Profitability

This table compares Viacom and Function(x)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viacom 14.13% 28.95% 6.46%
Function(x) N/A N/A N/A

Institutional & Insider Ownership

79.3% of Viacom shares are held by institutional investors. Comparatively, 0.0% of Function(x) shares are held by institutional investors. 0.4% of Viacom shares are held by insiders. Comparatively, 60.5% of Function(x) shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Viacom pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Function(x) does not pay a dividend. Viacom pays out 17.1% of its earnings in the form of a dividend.

Risk & Volatility

Viacom has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Function(x) has a beta of -0.66, suggesting that its stock price is 166% less volatile than the S&P 500.

Summary

Viacom beats Function(x) on 11 of the 13 factors compared between the two stocks.

Viacom Company Profile

Viacom Inc. offers global media brands that create television programs, motion pictures, short-form content, applications, games, consumer products, social media experiences and other entertainment content. As of September 30, 2016, the Company offered its services for audiences in more than 180 countries. The Company operates through two segments: Media Networks and Filmed Entertainment. The Media Networks segment creates, acquires and distributes programming and other content for audiences The Media Networks segment provides entertainment content and related branded products for advertisers, content distributors and retailers. The Filmed Entertainment segment produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures, Paramount Vantage, Paramount Classics, Paramount Animation, Insurge Pictures, Nickelodeon Movies, MTV Films and Paramount Television brands.

Function(x) Company Profile

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.

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