Head to Head Review: Trade Desk (NASDAQ:TTD) and FOX (NASDAQ:FOXA)

FOX (NASDAQ:FOXA) and Trade Desk (NASDAQ:TTD) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FOX	9.84%	20.64%	10.76%
Trade Desk	13.61%	16.09%	6.90%

Valuation & Earnings

This table compares FOX and Trade Desk”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FOX	$17.13 billion	1.64	$1.69 billion	$3.83	17.48
Trade Desk	$2.90 billion	2.05	$443.30 million	$0.84	15.04

FOX has higher revenue and earnings than Trade Desk. Trade Desk is trading at a lower price-to-earnings ratio than FOX, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

FOX has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Trade Desk has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for FOX and Trade Desk, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FOX	0	10	13	1	2.62
Trade Desk	9	26	4	0	1.87

FOX currently has a consensus target price of $78.12, indicating a potential upside of 16.66%. Trade Desk has a consensus target price of $18.16, indicating a potential upside of 43.76%. Given Trade Desk’s higher possible upside, analysts clearly believe Trade Desk is more favorable than FOX.

Insider and Institutional Ownership

52.5% of FOX shares are owned by institutional investors. Comparatively, 67.8% of Trade Desk shares are owned by institutional investors. 20.9% of FOX shares are owned by company insiders. Comparatively, 11.7% of Trade Desk shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

FOX beats Trade Desk on 10 of the 15 factors compared between the two stocks.

About FOX

Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through four segments: Cable Network Programming, Television, Credible, and The FOX Studio Lot. The Cable Network Programming segment produces and licenses news and sports content for distribution through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms primarily in the U.S. Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, and operates power broadcast television stations including duopolies and other digital platform; and produces content for third parties. The Credible segment engages in the consumer finance marketplace. The FOX Studio Lot segment provides television and film production services along with office space, studio operation services and includes all operations of the facility. The company was incorporated in 2018 and is headquartered in New York, New York.

About Trade Desk

The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.