FOX (FOX) & Sinclair Broadcast Group (SBGI) Head-To-Head Review

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FOX (NASDAQ:FOX) and Sinclair Broadcast Group (NASDAQ:SBGI) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Dividends

Sinclair Broadcast Group pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. FOX does not pay a dividend. Sinclair Broadcast Group pays out 23.9% of its earnings in the form of a dividend. Sinclair Broadcast Group has increased its dividend for 7 consecutive years.

Insider and Institutional Ownership

0.2% of FOX shares are held by institutional investors. Comparatively, 67.0% of Sinclair Broadcast Group shares are held by institutional investors. 39.4% of FOX shares are held by company insiders. Comparatively, 29.2% of Sinclair Broadcast Group shares are held by company 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.

Analyst Ratings

This is a breakdown of current recommendations for FOX and Sinclair Broadcast Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FOX 1 0 0 0 1.00
Sinclair Broadcast Group 0 3 6 0 2.67

FOX currently has a consensus target price of $41.00, indicating a potential upside of 10.75%. Sinclair Broadcast Group has a consensus target price of $38.25, indicating a potential downside of 14.91%. Given FOX’s higher probable upside, analysts clearly believe FOX is more favorable than Sinclair Broadcast Group.

Earnings and Valuation

This table compares FOX and Sinclair Broadcast Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FOX N/A N/A N/A $1.93 19.18
Sinclair Broadcast Group $3.06 billion 1.34 $341.24 million $3.35 13.42

Sinclair Broadcast Group has higher revenue and earnings than FOX. Sinclair Broadcast Group 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 Sinclair Broadcast Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FOX N/A N/A N/A
Sinclair Broadcast Group 11.17% 21.77% 5.22%

Summary

Sinclair Broadcast Group beats FOX on 10 of the 14 factors compared between the two stocks.

About FOX

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.

About Sinclair Broadcast Group

Sinclair Broadcast Group, Inc. operates as a television broadcasting company in the United States. It owns or provides various programming, operating, sales, and other non-programming operating services to television stations. The company broadcasts free over-the-air programming, such as network provided programs, locally-produced news, local sporting events, programming from program service arrangements, syndicated entertainment programs, and internally originated programming to television viewing audiences in the communities through its local television stations. As of December 31, 2018, it owned, operated, and/or provided services to 191 stations in 89 markets, which broadcast 605 channels. The company also owns and operates various networks carried on distribution platforms; and Tennis Channel, a cable network that includes coverage of various tennis' top tournaments and original professional sport, and tennis lifestyle shows. In addition, it offers digital agency services; and broadcast related technical services to the broadcast industry, as well as designs and manufactures broadcast systems, including transmitters and antennas. Further, the company provides sign design and fabrication services; and invests in various real estate ventures, including developmental land, and operating commercial and multi-family residential real estate properties and apartments, as well as private equity and structured debt/mezzanine financing investment funds. Additionally, it offers Tennis Magazine; and operates Tennis.com, an online tennis platform. The company was founded in 1986 and is headquartered in Hunt Valley, Maryland.

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