Comparing Twenty-First Century Fox (FOXA) & Charter Communications (CHTR)

Twenty-First Century Fox (NASDAQ:FOXA) and Charter Communications (NASDAQ:CHTR) are both large-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

54.0% of Twenty-First Century Fox shares are held by institutional investors. Comparatively, 71.2% of Charter Communications shares are held by institutional investors. 17.5% of Twenty-First Century Fox shares are held by insiders. Comparatively, 0.8% of Charter Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.



Analyst Ratings

This is a summary of recent ratings and recommmendations for Twenty-First Century Fox and Charter Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twenty-First Century Fox 0 8 11 0 2.58
Charter Communications 1 4 13 0 2.67

Twenty-First Century Fox presently has a consensus target price of $45.44, suggesting a potential upside of 0.17%. Charter Communications has a consensus target price of $360.14, suggesting a potential upside of 15.29%. Given Charter Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Charter Communications is more favorable than Twenty-First Century Fox.

Profitability

This table compares Twenty-First Century Fox and Charter Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twenty-First Century Fox 14.68% 18.71% 6.88%
Charter Communications 24.39% 2.39% 0.76%

Volatility and Risk

Twenty-First Century Fox has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Charter Communications has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Dividends

Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Charter Communications does not pay a dividend. Twenty-First Century Fox pays out 18.3% of its earnings in the form of a dividend. Twenty-First Century Fox has increased its dividend for 4 consecutive years.

Valuation & Earnings

This table compares Twenty-First Century Fox and Charter Communications’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twenty-First Century Fox $30.40 billion 2.76 $4.46 billion $1.97 23.03
Charter Communications $41.58 billion 1.74 $9.90 billion $2.65 117.54

Charter Communications has higher revenue and earnings than Twenty-First Century Fox. Twenty-First Century Fox is trading at a lower price-to-earnings ratio than Charter Communications, indicating that it is currently the more affordable of the two stocks.

Summary

Charter Communications beats Twenty-First Century Fox on 10 of the 17 factors compared between the two stocks.

Twenty-First Century Fox Company Profile

Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company primarily in the United States and Canada, Europe, and internationally. It operates through Cable Network Programming, Television, and Filmed Entertainment segments. The company produces and licenses news, business news, sports, general entertainment, factual entertainment, and movie programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunication companies, and online video distributors. It also broadcasts network programming; and operates 28 broadcast television stations, including 11 duopolies in the United States. In addition, the company produces and acquires live-action and animated motion pictures for distribution and licensing in various formats in entertainment media, as well as produces and licenses television programming. The company was formerly known as News Corporation. Twenty-First Century Fox, Inc. was founded in 1922 and is headquartered in New York, New York.

Charter Communications Company Profile

Charter Communications, Inc., through its subsidiaries, provides cable services to residential and commercial customers in the United States. It offers subscription-based video services, including video on demand, high definition television, digital video recorder, pay-per-view, spectrum guide services, and a package of basic video programming, as well as ad-supported free online video products. The company also provides Internet services, such as security suite that protects computers from viruses and spyware; in-home WiFi, which permits customers to lease high performance wireless routers to enhance their in-home wireless Internet experience; out-of-home WiFi; parental control features; and residential Internet services. In addition, it offers voice communications services using voice over Internet protocol technology; and broadband communications solutions, such as Internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. Further, the company provides video programming and music, Web hosting, email and security, and multi-line telephone services, as well as Web-based service management; and sells video and online advertising inventory to local, regional, and national advertising customers. Additionally, it offers fiber-delivered communications and managed information technology solutions; and security and home management services, as well as owns and operates regional sports networks and local sports, news, and lifestyle channels. As of December 31, 2017, the company served approximately 27.2 million residential and business customers. Charter Communications, Inc. was founded in 1999 and is based in Stamford, Connecticut.

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