Critical Review: Fuji Media (FJTNF) & The Competition

Insider and Institutional Ownership

15.6% of Fuji Media shares are held by institutional investors. Comparatively, 38.7% of shares of all “Media” companies are held by institutional investors. 18.3% of shares of all “Media” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Fuji Media and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fuji Media	N/A	N/A	0.20
Fuji Media Competitors	$2.99 billion	-$39.20 million	13.93

Fuji Media’s peers have higher revenue, but lower earnings than Fuji Media. Fuji Media is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Fuji Media and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fuji Media	N/A	N/A	N/A
Fuji Media Competitors	-20.07%	-47.83%	-5.13%

Dividends

Fuji Media pays an annual dividend of $33.45 per share and has a dividend yield of 170.6%. Fuji Media pays out 33.3% of its earnings in the form of a dividend. As a group, “Media” companies pay a dividend yield of 5.0% and pay out 135.9% of their earnings in the form of a dividend. Fuji Media is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Fuji Media beats its peers on 5 of the 9 factors compared.

About Fuji Media

Fuji Media Holdings, Inc., through its subsidiaries, engages in the broadcasting activities in Japan. It operates through Media & Content, Urban Development, Hotels & Resorts, and Other segments. The Media & Content segment provides terrestrial television broadcasting, including satellite broadcasting, radio broadcasting, streaming platforms, content production, games, music, advertising, publishing, and direct marketing activities. The Urban Development, Hotels & Resorts segment develops, leases, and manages office buildings; operates commercial facilities and restaurants; sells and leases apartments; and operates hotels and marine leisure facilities. The Other segment engages in IT system architecture and human resources, and overseas business development activities; the provision of market research services on media and lifestyles; and cultivation of new businesses. The company was formerly known as Fuji Television Network, Inc. Fuji Media Holdings, Inc. was incorporated in 1957 and is headquartered in Tokyo, Japan.