Newsmax (NYSE:NMAX – Get Free Report) and FOX (NASDAQ:FOX – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.
Profitability
This table compares Newsmax and FOX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Newsmax | -3.15% | -8.28% | -3.85% |
| FOX | 11.30% | 23.96% | 12.52% |
Earnings & Valuation
This table compares Newsmax and FOX”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Newsmax | $189.26 million | 4.98 | -$99.50 million | ($0.05) | -145.90 |
| FOX | $17.13 billion | 1.45 | $1.69 billion | $4.71 | 12.46 |
FOX has higher revenue and earnings than Newsmax. Newsmax is trading at a lower price-to-earnings ratio than FOX, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Newsmax and FOX, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Newsmax | 1 | 0 | 2 | 0 | 2.33 |
| FOX | 1 | 1 | 6 | 2 | 2.90 |
Newsmax currently has a consensus price target of $10.00, suggesting a potential upside of 37.08%. FOX has a consensus price target of $79.50, suggesting a potential upside of 35.41%. Given Newsmax’s higher possible upside, research analysts plainly believe Newsmax is more favorable than FOX.
Insider & Institutional Ownership
26.4% of FOX shares are held by institutional investors. 61.0% of Newsmax shares are held by insiders. Comparatively, 23.1% of FOX shares are held by 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.
Volatility and Risk
Newsmax has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500. Comparatively, FOX has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
Summary
FOX beats Newsmax on 11 of the 15 factors compared between the two stocks.
About Newsmax
Newsmax is a multimedia news company that produces and distributes news, opinion and lifestyle content. Its offerings include the Newsmax television network, digital news and video platforms, and print publications such as Newsmax magazine. Founded in 1998 by Christopher Ruddy, the company is based in Boca Raton, Florida. Ruddy serves as Newsmax’s chief executive officer. Newsmax reaches audiences in the United States and abroad through television distribution and its digital platforms, which provide news coverage, commentary and other programming.
About FOX
Fox Corporation is a U.S. media company that produces and distributes news, sports and entertainment programming. Its operations include the FOX broadcast network, Fox News Media, Fox Sports, FOX Entertainment and Fox Television Stations. The company also owns Tubi, an ad-supported streaming service. Fox Corporation was formed in 2019 after The Walt Disney Company acquired much of 21st Century Fox. The company’s programming and services are primarily aimed at audiences in the United States, with content also distributed to viewers in other markets.
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