Critical Comparison: Twenty-First Century Fox (FOXA) versus Cinedigm Corp (CIDM)
Twenty-First Century Fox (NASDAQ: FOXA) and Cinedigm Corp (NASDAQ:CIDM) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Volatility & Risk
Twenty-First Century Fox has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Cinedigm Corp has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Twenty-First Century Fox and Cinedigm Corp, 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 presently has a consensus price target of $33.53, indicating a potential upside of 27.09%. Given Twenty-First Century Fox’s higher probable upside, analysts clearly believe Twenty-First Century Fox is more favorable than Cinedigm Corp.
Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Cinedigm Corp does not pay a dividend. Twenty-First Century Fox pays out 22.6% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Twenty-First Century Fox and Cinedigm Corp’s top-line 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||1.71||$7.11 billion||$1.59||16.59|
|Cinedigm Corp||$83.16 million||0.24||$34.79 million||($1.78)||-0.81|
Twenty-First Century Fox has higher revenue and earnings than Cinedigm Corp. Cinedigm Corp is trading at a lower price-to-earnings ratio than Twenty-First Century Fox, indicating that it is currently the more affordable of the two stocks.
This table compares Twenty-First Century Fox and Cinedigm Corp’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%|
Institutional and Insider Ownership
53.3% of Twenty-First Century Fox shares are held by institutional investors. Comparatively, 8.7% of Cinedigm Corp shares are held by institutional investors. 20.1% of Twenty-First Century Fox shares are held by insiders. Comparatively, 13.9% of Cinedigm Corp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Twenty-First Century Fox beats Cinedigm Corp on 13 of the 14 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.
Cinedigm Corp Company Profile
Cinedigm Corp. is a distributor and aggregator of independent movie, television and other short form content managing a library of distribution rights to thousands of titles and episodes released across digital, physical, and home and mobile entertainment platforms. The Company also provides digital cinema assets servicing on over 12,000 domestic and foreign movie screens. It operates through four segments: first digital cinema deployment (Phase I Deployment), the second digital cinema deployment (Phase II Deployment), digital cinema services and media content and entertainment group. It collaborates with producers, brands and other content owners to market, source, curate and distribute content to targeted audiences. It distributes content through existing and emerging digital home entertainment platforms and packaged distribution of DVD and Blu-ray discs to wholesalers and retailers and mortar storefronts. It also operates a branded and curated over-the-top entertainment channels.
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