Analyzing fuboTV (NYSE:FUBO) & Educational Development (NASDAQ:EDUC)

Educational Development (NASDAQ:EDUC) and fuboTV (NYSE:FUBO) are both small-cap communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings and Valuation

This table compares Educational Development and fuboTV”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Educational Development	$22.91 million	0.35	$2.33 million	$0.19	4.97
fuboTV	$1.62 billion	0.14	-$18.87 million	($1.28)	-6.05

Educational Development has higher earnings, but lower revenue than fuboTV. fuboTV is trading at a lower price-to-earnings ratio than Educational Development, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

19.6% of Educational Development shares are owned by institutional investors. Comparatively, 39.3% of fuboTV shares are owned by institutional investors. 11.9% of Educational Development shares are owned by insiders. Comparatively, 5.3% of fuboTV shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Educational Development and fuboTV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Educational Development	1	0	0	0	1.00
fuboTV	1	2	6	1	2.70

fuboTV has a consensus price target of $16.83, indicating a potential upside of 117.46%. Given fuboTV’s stronger consensus rating and higher possible upside, analysts clearly believe fuboTV is more favorable than Educational Development.

Risk & Volatility

Educational Development has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, fuboTV has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500.

Profitability

This table compares Educational Development and fuboTV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Educational Development	8.60%	-18.72%	-14.64%
fuboTV	-0.71%	-7.67%	-1.33%

Summary

fuboTV beats Educational Development on 9 of the 15 factors compared between the two stocks.

About Educational Development

Educational Development Corporation (NASDAQ: EDUC) is a publisher and distributor of educational children’s books and related products. Through its PaperPie business, the company sells books primarily through direct-to-consumer channels, including independent brand partners and online platforms. The company’s product portfolio includes children’s fiction and nonfiction, activity books, reference materials, early-learning resources, and other educational products. It has also distributed titles from Usborne Publishing, a United Kingdom-based children’s publisher, to customers in the United States and Canada.

About fuboTV

FuboTV Inc., which operates under the Fubo name, is a live-TV streaming company with a focus on sports. Its subscription service offers live sports programming alongside news and entertainment channels, providing an internet-based alternative to traditional pay television. The service includes packages with different channel selections and may offer add-ons and features such as cloud DVR, depending on the market and plan. Fubo began in 2015 as a streaming service focused on soccer and later expanded into a broader live-TV offering.