Corus Entertainment (OTCMKTS:CJREF) vs. FOX (NASDAQ:FOX) Critical Contrast

FOX (NASDAQ:FOX) and Corus Entertainment (OTCMKTS:CJREF) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for FOX and Corus Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FOX	0	1	4	1	3.00
Corus Entertainment	1	0	0	0	1.00

FOX currently has a consensus target price of $82.50, indicating a potential upside of 22.13%. Given FOX’s stronger consensus rating and higher probable upside, equities research analysts plainly believe FOX is more favorable than Corus Entertainment.

Valuation & Earnings

This table compares FOX and Corus Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FOX	$16.47 billion	1.82	$2.26 billion	$4.45	15.18
Corus Entertainment	$807.48 million	0.01	-$235.20 million	($1.20)	-0.02

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

Profitability

This table compares FOX and Corus Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FOX	12.35%	18.61%	9.60%
Corus Entertainment	-29.42%	N/A	-4.64%

Volatility & Risk

FOX has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Corus Entertainment has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

26.4% of FOX shares are owned by institutional investors. 23.1% of FOX shares are owned by company insiders. Comparatively, 3.5% of Corus Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

FOX beats Corus Entertainment on 14 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 Corus Entertainment

Corus Entertainment Inc., a media and content company, operates specialty and conventional television networks, and radio stations in Canada and internationally. It operates in two segments, Television and Radio. The Television segment consists of specialty television networks, conventional television stations, digital and streaming platforms, a social digital agency, and a social media creator network; and provides technology and media services. This segment also engages in the production and distribution of films and television programs; merchandise licensing and book publishing activities; and provision of advertising services, subscriptions, and the licensing of proprietary films and television programs, as well as production services. The Radio segment operates radio stations that include a network of news/talk radio stations, as well as classic hits, rock, country, and hot adult contemporary radio formats. The company produces and distributes children’s animated content and consumer products; owns Nelvana, Corus Studios, Aircraft Pictures, Kid Can Press, so.da, and Kin Community Canada, and Quay Media Services; and operates companion websites, digital and streaming platforms, and applications that are related to its brands. Corus Entertainment Inc. was incorporated in 1998 and is headquartered in Toronto, Canada.