iHeartMedia (NASDAQ:IHRT – Get Free Report) and FOX (NASDAQ:FOX – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
93.9% of iHeartMedia shares are owned by institutional investors. Comparatively, 26.4% of FOX shares are owned by institutional investors. 8.5% of iHeartMedia shares are owned by insiders. Comparatively, 23.1% of FOX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares iHeartMedia and FOX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iHeartMedia | -9.68% | -2.84% | -1.74% |
| FOX | 13.88% | 18.86% | 9.56% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iHeartMedia | 0 | 4 | 1 | 0 | 2.20 |
| FOX | 0 | 2 | 0 | 0 | 2.00 |
iHeartMedia currently has a consensus price target of $2.92, suggesting a potential downside of 5.61%. Given iHeartMedia’s stronger consensus rating and higher probable upside, analysts plainly believe iHeartMedia is more favorable than FOX.
Risk and Volatility
iHeartMedia has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, FOX has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Earnings & Valuation
This table compares iHeartMedia and FOX”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iHeartMedia | $3.85 billion | 0.12 | -$1.01 billion | ($2.43) | -1.27 |
| FOX | $16.30 billion | 1.48 | $2.26 billion | $4.91 | 11.00 |
FOX has higher revenue and earnings than iHeartMedia. iHeartMedia is trading at a lower price-to-earnings ratio than FOX, indicating that it is currently the more affordable of the two stocks.
Summary
FOX beats iHeartMedia on 9 of the 14 factors compared between the two stocks.
About iHeartMedia
iHeartMedia, Inc. operates as an audio media company in the United States and internationally. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and events, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents syndicated radio programs and services to radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web based service for radio stations, digital only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business; and provides scheduling and broadcast software and services. This segment also provides RCS, a cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. The company is headquartered in San Antonio, Texas.
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.
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