Twenty-First Century Fox (FOXA) and DHX Media (DHXM) Critical Survey
Twenty-First Century Fox (NASDAQ: FOXA) and DHX Media (NASDAQ:DHXM) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.3%. DHX Media pays an annual dividend of $0.06 per share and has a dividend yield of 1.6%. Twenty-First Century Fox pays out 22.6% of its earnings in the form of a dividend. 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.
Institutional and Insider Ownership
53.3% of Twenty-First Century Fox shares are held by institutional investors. 20.3% of Twenty-First Century Fox shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Twenty-First Century Fox and DHX Media, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Twenty-First Century Fox||0||5||16||0||2.76|
Twenty-First Century Fox currently has a consensus target price of $33.53, indicating a potential upside of 24.22%. DHX Media has a consensus target price of $9.13, indicating a potential upside of 137.01%. Given DHX Media’s higher probable upside, analysts plainly believe DHX Media is more favorable than Twenty-First Century Fox.
Volatility & Risk
Twenty-First Century Fox has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, DHX Media has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
This table compares Twenty-First Century Fox and DHX Media’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Twenty-First Century Fox||10.36%||22.46%||7.19%|
Valuation & Earnings
This table compares Twenty-First Century Fox and DHX Media’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Twenty-First Century Fox||$28.50 billion||1.75||$7.11 billion||$1.59||16.97|
|DHX Media||$235.62 million||2.19||$53.05 million||$0.07||55.00|
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.
Twenty-First Century Fox beats DHX Media on 12 of the 16 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.
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.
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