Critical Review: 21st Century Fox (FOX) & Lee Enterprises (LEE)

21st Century Fox (NASDAQ: FOX) and Lee Enterprises (NYSE:LEE) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Dividends

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21st Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Lee Enterprises does not pay a dividend.

Volatility and Risk

21st Century Fox has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Lee Enterprises has a beta of 2.21, meaning that its share price is 121% more volatile than the S&P 500.

Valuation & Earnings

This table compares 21st Century Fox and Lee Enterprises’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
21st Century Fox $28.50 billion 2.34 $2.95 billion N/A N/A
Lee Enterprises $566.94 million 0.23 $27.48 million $0.31 7.26

21st Century Fox has higher revenue and earnings than Lee Enterprises.

Profitability

This table compares 21st Century Fox and Lee Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
21st Century Fox 13.49% 19.01% 6.49%
Lee Enterprises 9.04% -18.41% 2.59%

Insider and Institutional Ownership

24.3% of 21st Century Fox shares are owned by institutional investors. Comparatively, 33.6% of Lee Enterprises shares are owned by institutional investors. 39.4% of 21st Century Fox shares are owned by company insiders. Comparatively, 8.8% of Lee Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for 21st Century Fox and Lee Enterprises, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
21st Century Fox 0 0 2 0 3.00
Lee Enterprises 0 0 0 0 N/A

21st Century Fox currently has a consensus target price of $43.00, suggesting a potential upside of 19.21%. Given 21st Century Fox’s higher possible upside, analysts plainly believe 21st Century Fox is more favorable than Lee Enterprises.

Summary

21st Century Fox beats Lee Enterprises on 11 of the 13 factors compared between the two stocks.

21st Century Fox Company Profile

Twenty-First Century Fox, Inc., together with its subsidiaries, operates as a diversified media and entertainment company primarily in the United States, the United Kingdom, Continental Europe, Asia, and Latin America. 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 and entertainment media, as well as produces and licenses television programming. Further, it provides video advertising services, including consumer engagement and on-demand marketing campaigns; operates two San Francisco-Bay area television stations; and broadcasts and operates Telugu language entertainment channels in India. 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.

Lee Enterprises Company Profile

Lee Enterprises, Incorporated provides local news and information, and advertising services primarily in the Midwest, Mountain West, and West regions of the United States. It publishes 47 daily newspapers with 0.8 million circulation units, as well as Sunday newspapers with 1.2 million circulation units; and 300 weekly newspapers, and classified and niche publications in 22 states with print and related digital operations. The company also offers retail, classified, national, and digital advertising services, as well as custom digital marketing services. Lee Enterprises, Incorporated was founded in 1890 and is based in Davenport, Iowa.

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