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

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

Dividends

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

Insider and Institutional Ownership

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

Earnings and Valuation

This table compares FOX and TEGNA’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 N/A N/A
TEGNA $2.21 billion 1.50 $405.67 million $1.83 8.37

TEGNA has higher revenue and earnings than FOX.

Analyst Ratings

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

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

FOX currently has a consensus price target of $46.23, suggesting a potential upside of 26.89%. TEGNA has a consensus price target of $16.00, suggesting a potential upside of 4.51%. Given FOX’s higher probable upside, research analysts clearly believe FOX is more favorable than TEGNA.

Profitability

This table compares FOX and TEGNA’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
TEGNA 18.91% 30.61% 7.42%

Summary

TEGNA beats FOX on 7 of the 11 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 TEGNA

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.

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