Head to Head Contrast: Function(x) (FNCX) versus DHX Media (DHXM)

Function(x) (OTCMKTS: FNCX) and DHX Media (NASDAQ:DHXM) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Dividends

DHX Media pays an annual dividend of $0.06 per share and has a dividend yield of 1.9%. Function(x) does not pay a dividend. DHX Media pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Function(x) and DHX Media’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Function(x) $4.51 million 0.36 -$61.86 million ($7.95) -0.01
DHX Media N/A N/A N/A $0.02 157.50

DHX Media has higher revenue, but lower earnings than Function(x). Function(x) is trading at a lower price-to-earnings ratio than DHX Media, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.0% of Function(x) shares are held by institutional investors. 60.5% of Function(x) shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Function(x) N/A N/A N/A
DHX Media 4.46% 5.05% 1.91%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Function(x) and DHX Media, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Function(x) 0 0 0 0 N/A
DHX Media 0 3 2 0 2.40

Summary

DHX Media beats Function(x) on 6 of the 10 factors compared between the two stocks.

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.

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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