Comparing Paramount Global (NASDAQ:PARA) and FOX (NASDAQ:FOX)

Paramount Global (NASDAQ:PARAGet Rating) and FOX (NASDAQ:FOXGet Rating) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Dividends

Paramount Global pays an annual dividend of $0.96 per share and has a dividend yield of 3.2%. FOX pays an annual dividend of $0.48 per share and has a dividend yield of 1.4%. Paramount Global pays out 13.9% of its earnings in the form of a dividend. FOX pays out 19.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FOX has increased its dividend for 1 consecutive years. Paramount Global is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations for Paramount Global and FOX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Global 1 1 1 0 2.00
FOX 1 2 2 0 2.20

Paramount Global presently has a consensus target price of $36.25, indicating a potential upside of 19.76%. FOX has a consensus target price of $37.75, indicating a potential upside of 11.49%. Given Paramount Global’s higher possible upside, equities analysts plainly believe Paramount Global is more favorable than FOX.

Risk & Volatility

Paramount Global has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, FOX has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

63.9% of Paramount Global shares are held by institutional investors. Comparatively, 24.0% of FOX shares are held by institutional investors. 0.4% of Paramount Global shares are held by insiders. Comparatively, 19.2% of FOX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Paramount Global and FOX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paramount Global 15.89% 10.85% 4.08%
FOX 10.57% 14.45% 7.07%

Valuation and Earnings

This table compares Paramount Global and FOX’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paramount Global $28.59 billion 0.69 $4.54 billion $6.91 4.38
FOX $12.91 billion 1.48 $2.15 billion $2.45 13.82

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

Summary

Paramount Global beats FOX on 9 of the 17 factors compared between the two stocks.

Paramount Global Company Profile (Get Rating)

Paramount Global operates as a media and entertainment company worldwide. The company distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; acquires or develops, and schedules programming on the CBS Television Network that includes primetime comedies and dramas, reality, specials, kids' programs, daytime dramas, game shows, and late night programs; produces or distributes talk shows, court shows, game shows, and newsmagazines; owns and operates 29 broadcast television stations; and operates CBS Sports Network, a 24-hour cable channel that provides sports and related content, as well as streaming and cable subscription services. It also operates Paramount+, a digital subscription video on-demand and live streaming services; and creates and acquires programming for distribution and viewing on various media platforms, including subscription cable networks, subscription streaming, and premium and basic cable networks. In addition, the company develops, produces, finances, acquires, and distributes films. Paramount Global was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was incorporated in 1986 and is headquartered in New York, New York.

FOX Company Profile (Get Rating)

Fox Corporation operates as a news, sports, and entertainment company in the United States. The company operates through three segments: Cable Network Programming; Television; and Other, Corporate and Eliminations. The Cable Network Programming segment produces and licenses news, business news, and sports content for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunications companies, and online multi-channel video programming distributors. It operates FOX News, a national cable news channel; FOX Business, a business news national cable channel; FS1 and FS2 multi-sport national networks; FOX Sports Racing, a video programming service that comprises motor sports programming; and FOX Soccer Plus, a video programming network for live soccer and rugby competitions; FOX Deportes, a Spanish-language sports programming service; and Big Ten Network, a national video programming service. The Television segment acquires, produces, markets, and distributes broadcast network programming. It operates The FOX Network, a national television broadcast network that broadcasts sports programming and entertainment; MyNetworkTV, a programming distribution service; Fox Alternative Entertainment, a full-service production studio that develops and produces unscripted and alternative programming; Bento Box, which develops and produces animated programing; and Tubi, a free advertising-supported video-on-demand service. This segment owns and operates 29 broadcast television stations. The Other, Corporate and Eliminations segment owns the FOX Studios lot that provides production and post-production services, including 15 sound stages, 2 broadcast studios, theaters and screening rooms, editing bays, and television and film production facilities in Los Angeles, California. The company was incorporated in 2018 and is based in New York, New York.

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