Critical Comparison: WideOpenWest (WOW) & 21st Century Fox (FOXA)

WideOpenWest (NYSE: WOW) and 21st Century Fox (NASDAQ:FOXA) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Dividends

21st Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. WideOpenWest does not pay a dividend. 21st Century Fox pays out 18.7% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares WideOpenWest and 21st Century Fox’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WideOpenWest $1.19 billion 0.63 $159.50 million $0.69 12.29
21st Century Fox $28.50 billion 2.46 $2.95 billion $1.93 19.57

21st Century Fox has higher revenue and earnings than WideOpenWest. WideOpenWest is trading at a lower price-to-earnings ratio than 21st Century Fox, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

57.1% of WideOpenWest shares are owned by institutional investors. Comparatively, 52.6% of 21st Century Fox shares are owned by institutional investors. 2.4% of WideOpenWest shares are owned by insiders. Comparatively, 20.3% of 21st Century Fox shares are owned 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.

Profitability

This table compares WideOpenWest and 21st Century Fox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WideOpenWest -9.85% N/A -0.08%
21st Century Fox 13.76% 17.50% 6.21%

Analyst Ratings

This is a breakdown of current ratings and price targets for WideOpenWest and 21st Century Fox, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WideOpenWest 0 2 4 1 2.86
21st Century Fox 0 6 12 0 2.67

WideOpenWest presently has a consensus target price of $19.00, indicating a potential upside of 124.06%. 21st Century Fox has a consensus target price of $39.15, indicating a potential upside of 3.66%. Given WideOpenWest’s stronger consensus rating and higher probable upside, research analysts plainly believe WideOpenWest is more favorable than 21st Century Fox.

Summary

21st Century Fox beats WideOpenWest on 11 of the 16 factors compared between the two stocks.

About WideOpenWest

WideOpenWest, Inc. operates as a cable operator in the United States. It provides high-speed data, cable television, voice over IP-based telephony, and business-class services to residential and business services customers. Its video services include basic cable services that comprise local broadcast television and local community programming; digital cable services; and ultra video products, as well as provides commercial-free movies, sports, and other special event entertainment programs. The company's telephony services consist of local area calling plans, local and long-distance plans, caller ID and waiting, voicemail, and toll packages. Its business telephony and data services include enhanced telephony services, data speeds of up to 10 gigabit per second on its fiber network, and office-to-office metro Ethernet services; hosted voice products that can replace customers' legacy private branch exchange products; session initiated protocol trunking services; and colocation infrastructure, cloud computing, managed backup, and recovery services. The company offers its services through hybrid fiber coaxial cable network. It offers its services in approximately 300 communities in the states of Alabama, Florida, Georgia, Illinois, Indiana, Maryland, Michigan, Ohio, South Carolina, and Tennessee. As of December 31, 2017, its networks passed 3,109 thousand homes and businesses and served 777 thousand customers. The company was formerly known as WideOpenWest Kite, Inc. and changed its name to WideOpenWest, Inc. in March 2017. The company was founded in 2001 and is based in Englewood, Colorado. WideOpenWest, Inc. is a subsidiary of WideOpenWest Holdings, LLC.

About 21st Century Fox

Twenty-First Century Fox, Inc., together with its subsidiaries, operates as a diversified media and entertainment company primarily in the United States, the United Kingdom, Continental Europe, Asia, and Latin America. It operates through Cable Network Programming, Television, and Filmed Entertainment segments. The company produces and licenses news, business news, sports, general entertainment, factual entertainment, and movie programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunication companies, and online video distributors. It also broadcasts network programming; and operates 28 broadcast television stations, including 11 duopolies in the United States. In addition, the company produces and acquires live-action and animated motion pictures for distribution and licensing in various formats and entertainment media, as well as produces and licenses television programming. Further, it provides video advertising services, including consumer engagement and on-demand marketing campaigns; operates two San Francisco-Bay area television stations; and broadcasts and operates Telugu language entertainment channels in India. The company was formerly known as News Corporation. Twenty-First Century Fox, Inc. was founded in 1922 and is headquartered in New York, New York.

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