Netflix (NASDAQ:NFLX) vs. FOX (NASDAQ:FOXA) Head-To-Head Comparison

Netflix (NASDAQ:NFLX) and FOX (NASDAQ:FOXA) are both large-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Institutional and Insider Ownership

80.9% of Netflix shares are held by institutional investors. Comparatively, 52.5% of FOX shares are held by institutional investors. 1.4% of Netflix shares are held by company insiders. Comparatively, 19.7% of FOX shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Netflix and FOX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netflix	1	12	31	2	2.74
FOX	0	8	9	2	2.68

Netflix presently has a consensus price target of $134.54, indicating a potential upside of 32.95%. FOX has a consensus price target of $70.50, indicating a potential upside of 2.49%. Given Netflix’s stronger consensus rating and higher possible upside, research analysts clearly believe Netflix is more favorable than FOX.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Netflix	24.05%	41.86%	19.52%
FOX	12.35%	18.61%	9.60%

Volatility and Risk

Netflix has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, FOX has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netflix	$39.00 billion	10.99	$8.71 billion	$2.39	42.34
FOX	$16.30 billion	1.87	$2.26 billion	$4.45	15.46

Netflix has higher revenue and earnings than FOX. FOX is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.

Summary

Netflix beats FOX on 12 of the 14 factors compared between the two stocks.

About Netflix

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.

About FOX

Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through four segments: Cable Network Programming, Television, Credible, and The FOX Studio Lot. The Cable Network Programming segment produces and licenses news and sports content for distribution through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms primarily in the U.S. Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, and operates power broadcast television stations including duopolies and other digital platform; and produces content for third parties. The Credible segment engages in the consumer finance marketplace. The FOX Studio Lot segment provides television and film production services along with office space, studio operation services and includes all operations of the facility. The company was incorporated in 2018 and is headquartered in New York, New York.