Comparing Ideanomics (NASDAQ:IDEX) & Discovery Communications (NASDAQ:DISCA)

Ideanomics (NASDAQ:IDEX) and Discovery Communications (NASDAQ:DISCA) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

This table compares Ideanomics and Discovery Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ideanomics -1.73% -7.79% -2.69%
Discovery Communications 9.00% 20.10% 6.09%

Risk and Volatility

Ideanomics has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500. Comparatively, Discovery Communications has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ideanomics and Discovery Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ideanomics 0 0 0 0 N/A
Discovery Communications 0 4 9 0 2.69

Discovery Communications has a consensus target price of $34.35, indicating a potential upside of 8.52%. Given Discovery Communications’ higher probable upside, analysts plainly believe Discovery Communications is more favorable than Ideanomics.

Earnings and Valuation

This table compares Ideanomics and Discovery Communications’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ideanomics $377.74 million 0.74 -$27.43 million N/A N/A
Discovery Communications $10.55 billion 1.57 $594.00 million $2.11 15.00

Discovery Communications has higher revenue and earnings than Ideanomics.

Institutional and Insider Ownership

1.7% of Ideanomics shares are held by institutional investors. Comparatively, 34.4% of Discovery Communications shares are held by institutional investors. 6.8% of Ideanomics shares are held by company insiders. Comparatively, 4.4% of Discovery Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Discovery Communications beats Ideanomics on 9 of the 11 factors compared between the two stocks.

About Ideanomics

Ideanomics, Inc. operates as a financial technology and asset digitization services company. The company operates in two segments, Legacy YOD and Wecast Service. It engages in the provision of business consulting services related to traditional financings, as well as in developing digital asset securitization services through artificial intelligence and blockchain enabled financial services platforms. In addition, the company engages in consumer electronics e-commerce and smart supply chain management operations, as well as in oil trading business. Further, it provides premium content and integrated value-added service solutions for the delivery of video on demand and paid video programing to digital cable providers, Internet protocol television providers, over-the-top streaming providers, mobile manufacturers, and operators, as well as direct customers. The company was formerly known as Seven Stars Cloud Group, Inc. Ideanomics, Inc. was founded in 2004 and is headquartered in New York, New York.

About Discovery Communications

Discovery, Inc. operates as a media company worldwide. The company operates through two segments, U.S. Networks and International Networks. The company owns and operates various television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, MotorTrend, Food Network, HGTV, Travel Channel, TVN, DIY Network, Cooking Channel, Discovery Family Channel, American Heroes Channel, Destination America, Discovery Life, Discovery en Espanol, Discovery Familia, Great American Country, the Oprah Winfrey Network, Eurosport, Discovery Kids, DMAX, and Discovery Home & Health brands, as well as other regional television networks. Its content spans genres, including survival, exploration, sports, lifestyle, general entertainment, home, food and travel, heroes, adventure, crime and investigation, health, and kids. The company also operates production studios that develop and produce content; and digital products and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, authenticated GO applications, digital distribution arrangements, and content licensing agreements, as well as various platforms that include brand-aligned Websites, online streaming, mobile devices, video on demand, and broadband channels. As of December 31, 2018, the company operated approximately 400 distribution feeds in 50 languages internationally. Discovery, Inc. was founded in 1985 and is headquartered in Silver Spring, Maryland.

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