Reviewing Tribune (TRCO) and Twenty-First Century Fox (FOX)

Tribune (NYSE:TRCO) and Twenty-First Century Fox (NASDAQ:FOX) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Tribune 20.53% 9.50% 4.01%
Twenty-First Century Fox N/A N/A N/A

Insider and Institutional Ownership

95.3% of Tribune shares are owned by institutional investors. Comparatively, 0.2% of Twenty-First Century Fox shares are owned by institutional investors. 1.1% of Tribune shares are owned by company insiders. Comparatively, 39.4% of Twenty-First Century Fox shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Tribune and Twenty-First Century Fox’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tribune $2.01 billion 2.02 $412.57 million $3.68 12.54
Twenty-First Century Fox N/A N/A N/A N/A N/A

Tribune has higher revenue and earnings than Twenty-First Century Fox.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tribune and Twenty-First Century Fox, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tribune 1 1 4 0 2.50
Twenty-First Century Fox 1 0 0 0 1.00

Tribune currently has a consensus target price of $40.20, indicating a potential downside of 12.91%. Twenty-First Century Fox has a consensus target price of $41.00, indicating a potential upside of 10.87%. Given Twenty-First Century Fox’s higher probable upside, analysts plainly believe Twenty-First Century Fox is more favorable than Tribune.

Dividends

Tribune pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Twenty-First Century Fox does not pay a dividend. Tribune pays out 27.2% of its earnings in the form of a dividend.

Summary

Tribune beats Twenty-First Century Fox on 8 of the 11 factors compared between the two stocks.

About Tribune

Tribune Media Company, through its subsidiaries, operates as a diversified media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, MY television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV digital multicast networks; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.

About Twenty-First Century Fox

Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company primarily in the United States and Canada, Europe, and internationally. It operates through Cable Network Programming, Television, and Filmed Entertainment segments. The company produces and licenses news, business news, sports, general entertainment, factual entertainment, and movie programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunication companies, and online video distributors. It also broadcasts network programming; and operates 28 broadcast television stations, including 11 duopolies in the United States. In addition, the company produces and acquires live-action and animated motion pictures for distribution and licensing in various formats in entertainment media, as well as produces and licenses television programming. The company was formerly known as News Corporation. Twenty-First Century Fox, Inc. was founded in 1922 and is headquartered in New York, New York.

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