Eros International (NYSE: EROS) and FunctionX (OTCMKTS:FNCX) are both small-cap cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Insider and Institutional Ownership
60.5% of Eros International shares are owned by institutional investors. 60.5% of FunctionX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Eros International and FunctionX’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eros International||$252.99 million||2.00||$3.80 million||N/A||N/A|
|FunctionX||$4.51 million||0.34||-$61.86 million||N/A||N/A|
Eros International has higher revenue and earnings than FunctionX.
This is a breakdown of recent ratings and target prices for Eros International and FunctionX, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eros International presently has a consensus target price of $17.00, indicating a potential upside of 73.47%. Given Eros International’s higher possible upside, research analysts plainly believe Eros International is more favorable than FunctionX.
This table compares Eros International and FunctionX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Eros International has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, FunctionX has a beta of -0.65, meaning that its stock price is 165% less volatile than the S&P 500.
Eros International beats FunctionX on 10 of the 11 factors compared between the two stocks.
About Eros International
Eros International Plc (Eros) is a holding company, which serves the Indian film entertainment industry. The Company’s principal activities include the acquisition, co-production and distribution of Indian films and related content. It distributes its film content through the distribution channels, such as theatrical, including multiplex chains and standalone theaters; television syndication, including satellite television broadcasting, cable television and terrestrial television; digital and ancillary, including music, inflight entertainment, home video, Internet protocol television (IPTV), video on demand (VOD), and Internet channels and Eros Now. As of March 31, 2016, its distribution network extends to over 50 countries, such as the United States, the United Kingdom, the Middle East, Germany, Poland, Russia, Romania, Indonesia and Arabic speaking countries. It conducts global operations through its Indian and international subsidiaries, including Eros International Media Limited.
Function(x) Inc., formerly DraftDay Fantasy Sports, Inc., is a diversified media and entertainment company. The Company conducts three lines of businesses, which are digital publishing through Wetpaint.com, Inc. (Wetpaint) and Rant, Inc. (Rant); fantasy sports gaming through DraftDay Gaming Group, Inc. (DDGG), and digital content distribution through Choose Digital, Inc. (Choose Digital). The Company’s segments include Wetpaint, which is a media channel reporting original news stories and publishing information content covering television shows, music, celebrities, entertainment news and fashion; Choose Digital, which is a business-to-business platform for delivering digital content; DDGG, which is a business-to-business operator of daily fantasy sports, and Other. The Company’s digital publishing business also includes Rant, which is a digital publisher that publishes original content in over 13 verticals, such as in sports, entertainment, pets, cars and food.
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