FOX (NASDAQ:FOXA) & TEGNA (NASDAQ:TGNA) Critical Review

TEGNA (NYSE:TGNA) and FOX (NASDAQ:FOXA) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TEGNA $2.21 billion 1.50 $405.67 million $1.83 8.39
FOX N/A N/A N/A N/A N/A

TEGNA has higher revenue and earnings than FOX.

Dividends

TEGNA pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. FOX pays an annual dividend of $0.46 per share and has a dividend yield of 1.3%. TEGNA pays out 15.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

97.3% of TEGNA shares are owned by institutional investors. Comparatively, 51.2% of FOX shares are owned by institutional investors. 0.5% of TEGNA shares are owned by insiders. Comparatively, 17.5% of FOX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for TEGNA and FOX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TEGNA 0 3 5 0 2.63
FOX 2 10 13 0 2.44

TEGNA currently has a consensus target price of $16.00, indicating a potential upside of 4.23%. FOX has a consensus target price of $46.23, indicating a potential upside of 26.48%. Given FOX’s higher possible upside, analysts plainly believe FOX is more favorable than TEGNA.

Profitability

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

Net Margins Return on Equity Return on Assets
TEGNA 18.91% 30.61% 7.42%
FOX N/A N/A N/A

Summary

TEGNA beats FOX on 7 of the 11 factors compared between the two stocks.

TEGNA Company Profile

TEGNA Inc., a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products. The company also sells commercial advertising spots of its television stations. In addition, it operates Premion, an over the top local advertising network; Hatch, a centralized 360-degree marketing services agency; and radio broadcast stations. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in McLean, Virginia.

FOX Company Profile

Fox Corporation operates as a news, sports, and entertainment company in the United States. The company operates through Cable Network Programming; Television; and Other, Corporate and Eliminations segments. 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 video 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; and Big Ten Network. 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. This segment owns and operates 28 broadcast television stations. The Other, Corporate and Eliminations segment owns the FOX Studios lot that provides production services, including 15 sound stages, 4 scoring and mixing stages, 2 broadcast studios, theaters, editing bays, and other production facilities in Los Angeles, California. The company was founded in 2018 and is based in New York, New York. Fox Corporation operates independently of Twenty-First Century Fox, Inc. as of March 19, 2019.

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