FOX (NASDAQ:FOXA – Get Free Report) and fuboTV (NYSE:FUBO – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Risk & Volatility
FOX has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, fuboTV has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.
Institutional & Insider Ownership
52.5% of FOX shares are held by institutional investors. Comparatively, 39.3% of fuboTV shares are held by institutional investors. 21.8% of FOX shares are held by insiders. Comparatively, 5.3% of fuboTV shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
FOX | $16.30 billion | 1.59 | $2.26 billion | $4.91 | 11.86 |
fuboTV | $1.62 billion | 0.90 | -$172.25 million | $0.26 | 16.42 |
FOX has higher revenue and earnings than fuboTV. FOX is trading at a lower price-to-earnings ratio than fuboTV, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares FOX and fuboTV’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
FOX | 13.88% | 18.86% | 9.56% |
fuboTV | 5.50% | -20.81% | -5.41% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for FOX and fuboTV, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
FOX | 1 | 8 | 9 | 0 | 2.44 |
fuboTV | 0 | 1 | 2 | 1 | 3.00 |
FOX presently has a consensus price target of $56.47, indicating a potential downside of 3.06%. fuboTV has a consensus price target of $4.63, indicating a potential upside of 8.31%. Given fuboTV’s stronger consensus rating and higher probable upside, analysts plainly believe fuboTV is more favorable than FOX.
Summary
FOX beats fuboTV 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 fuboTV
fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.
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