Critical Contrast: FOX (NASDAQ:FOXA) and WRIT Media Group (OTCMKTS:WRIT)

WRIT Media Group (OTCMKTS:WRIT) and FOX (NASDAQ:FOXA) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Profitability

This table compares WRIT Media Group and FOX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WRIT Media Group	N/A	N/A	N/A
FOX	10.74%	15.57%	7.46%

Institutional & Insider Ownership

52.5% of FOX shares are held by institutional investors. 21.8% of FOX shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares WRIT Media Group and FOX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WRIT Media Group	N/A	N/A	N/A	($0.08)	-0.03
FOX	$13.98 billion	1.37	$1.50 billion	$3.13	13.33

FOX has higher revenue and earnings than WRIT Media Group. WRIT Media Group 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 recent ratings and price targets for WRIT Media Group and FOX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WRIT Media Group	0	0	0	0	N/A
FOX	1	8	7	0	2.38

FOX has a consensus price target of $41.08, suggesting a potential downside of 1.52%. Given FOX’s higher probable upside, analysts plainly believe FOX is more favorable than WRIT Media Group.

Summary

FOX beats WRIT Media Group on 10 of the 10 factors compared between the two stocks.

About WRIT Media Group

WRIT Media Group, Inc., through its subsidiaries, operates as a content creation company worldwide. It produces, acquires, licenses, and distributes music-related content in 3D and ultra-high definition for digital broadcast into digitally-enabled movie theaters, TV, and mobile streaming providers. The company also licenses pre-Windows computer game libraries, as well as adapts and republishes titles under the Amiga, Atari, and MS-DOS brands for smartphones, modern game consoles, PCs, tablets, and other television streaming devices; and publishes related merchandise and characters from the games. In addition, it develops digital currency, Blockchain technology, and digital currency trading software. The company was formerly known as Writers’ Group Film Corp. and changed its name to WRIT Media Group, Inc. in January 2014. WRIT Media Group, Inc. headquartered in Las Vegas, Nevada.

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.