Financial Contrast: FOX (FOX) and CBS (CBS)

FOX (NASDAQ:FOX) and CBS (NYSE:CBS) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Valuation and Earnings

This table compares FOX and CBS’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FOX N/A N/A N/A N/A N/A
CBS $14.51 billion 1.26 $1.96 billion $5.19 9.43

CBS has higher revenue and earnings than FOX.

Dividends

CBS pays an annual dividend of $0.72 per share and has a dividend yield of 1.5%. FOX does not pay a dividend. CBS pays out 13.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

2.6% of FOX shares are owned by institutional investors. Comparatively, 76.1% of CBS shares are owned by institutional investors. 39.4% of FOX shares are owned by company insiders. Comparatively, 0.6% of CBS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for FOX and CBS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FOX 1 0 0 0 1.00
CBS 0 8 10 0 2.56

FOX presently has a consensus target price of $41.00, indicating a potential upside of 10.27%. CBS has a consensus target price of $62.93, indicating a potential upside of 28.64%. Given CBS’s stronger consensus rating and higher probable upside, analysts plainly believe CBS is more favorable than FOX.

Profitability

This table compares FOX and CBS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FOX N/A N/A N/A
CBS 20.32% 66.79% 9.04%

Summary

CBS beats FOX on 9 of the 11 factors compared between the two stocks.

FOX Company Profile

Fox Corporation operates as a news, sports, and entertainment company in the United States. The company operates through Cable Network Programming; Television; and Other, Corporate and Eliminations segments. The Cable Network Programming segment produces and licenses news, business news, and sports content for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunications companies, and online video distributors. It operates FOX News, a national cable news channel; FOX Business, a business news national cable channel; FS1 and FS2 multi-sport national networks; and Big Ten Network. The Television segment acquires, produces, markets, and distributes broadcast network programming. It operates The FOX Network, a national television broadcast network that broadcasts sports programming and entertainment. This segment owns and operates 28 broadcast television stations. The Other, Corporate and Eliminations segment owns the FOX Studios lot that provides production services, including 15 sound stages, 4 scoring and mixing stages, 2 broadcast studios, theaters, editing bays, and other production facilities in Los Angeles, California. The company was founded in 2018 and is based in New York, New York. Fox Corporation operates independently of Twenty-First Century Fox, Inc. as of March 19, 2019.

CBS Company Profile

CBS Corporation operates as a mass media company worldwide. The company operates in four segments: Entertainment, Cable Networks, Publishing, and Local Media. The Entertainment segment distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; produces, acquires, and/or distributes programming, including series, specials, news, and public affairs; operates online content networks for information and entertainment; produces theatrical films; and digital streaming services. This segment also operates CBS Sports Network, a 24-hour cable program service that provides college sports and related content. The Cable Networks segment offers subscription program services, such as original series, theatrical feature films, documentaries, boxing and other sports-related programming, and special events, as well as a direct-to-consumer digital streaming subscription. This segment also operates Smithsonian Networks, which operates a channel featuring cultural, historical, scientific, and educational programs. The Publishing segment publishes and distributes adult and children's consumer books in printed, digital, and audio formats; develops special imprints and publishes titles based on the products of the company, as well as that of third parties; and distributes products for other publishers. This segment also delivers content; and promotes its products on its Websites, social media, and general Internet sites, as well as those related to individual titles. The Local Media segment owns 29 broadcast television stations; and operates local Websites, including content from its television stations. The company was founded in 1986 and is headquartered in New York, New York.

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