Twenty-First Century Fox (NASDAQ: FOXAV) and World Wrestling Entertainment (NYSE:WWE) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares Twenty-First Century Fox and World Wrestling Entertainment’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 N/A N/A N/A N/A N/A
World Wrestling Entertainment $762.15 million 2.37 $81.40 million $0.31 75.55

World Wrestling Entertainment has higher revenue and earnings than Twenty-First Century Fox.

Institutional & Insider Ownership

49.5% of World Wrestling Entertainment shares are owned by institutional investors. 49.8% of World Wrestling Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Twenty-First Century Fox and World Wrestling Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twenty-First Century Fox 0 0 0 0 N/A
World Wrestling Entertainment 1 2 6 0 2.56

World Wrestling Entertainment has a consensus target price of $24.43, indicating a potential upside of 4.31%. Given World Wrestling Entertainment’s higher possible upside, analysts plainly believe World Wrestling Entertainment is more favorable than Twenty-First Century Fox.

Profitability

This table compares Twenty-First Century Fox and World Wrestling Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twenty-First Century Fox 8.25% 13.07% 4.41%
World Wrestling Entertainment 3.29% 13.07% 5.51%

Dividends

World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Twenty-First Century Fox does not pay a dividend. World Wrestling Entertainment pays out 154.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

World Wrestling Entertainment beats Twenty-First Century Fox on 7 of the 9 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.

World Wrestling Entertainment Company Profile

World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.

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