DHX Media (DHXM) vs. Its Rivals Financial Analysis

DHX Media (NASDAQ: DHXM) is one of 25 publicly-traded companies in the “Entertainment Production” industry, but how does it contrast to its peers? We will compare DHX Media to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, dividends, valuation, earnings and risk.

Insider and Institutional Ownership

46.5% of shares of all “Entertainment Production” companies are owned by institutional investors. 27.7% of shares of all “Entertainment Production” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares DHX Media and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
DHX Media $245.75 million $55.76 million 45.01
DHX Media Competitors $6.27 billion $1.49 billion 126.24

DHX Media’s peers have higher revenue and earnings than DHX Media. DHX Media is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares DHX Media and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DHX Media 4.46% 5.05% 1.91%
DHX Media Competitors 2.71% 11.10% 3.62%

Dividends

DHX Media pays an annual dividend of $0.06 per share and has a dividend yield of 1.9%. 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. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.6% of their earnings in the form of a dividend.

Risk & Volatility

DHX Media has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, DHX Media’s peers have a beta of 0.92, indicating that their average share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for DHX Media and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DHX Media 0 3 4 0 2.57
DHX Media Competitors 108 482 1233 24 2.64

DHX Media currently has a consensus price target of $9.13, indicating a potential upside of 189.59%. As a group, “Entertainment Production” companies have a potential upside of 9.44%. Given DHX Media’s higher probable upside, equities research analysts clearly believe DHX Media is more favorable than its peers.

Summary

DHX Media peers beat DHX Media on 11 of the 14 factors compared.

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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