Critical Analysis: Twenty-First Century Fox (FOX) vs. Rediff.com India (REDFY)

Twenty-First Century Fox (NASDAQ:FOX) and Rediff.com India (OTCMKTS:REDFY) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares Twenty-First Century Fox and Rediff.com India’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twenty-First Century Fox 16.01% 18.01% 6.91%
Rediff.com India N/A N/A N/A

Valuation and Earnings

This table compares Twenty-First Century Fox and Rediff.com India’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twenty-First Century Fox $30.40 billion 2.99 $4.46 billion $1.97 24.89
Rediff.com India N/A N/A N/A N/A N/A

Twenty-First Century Fox has higher revenue and earnings than Rediff.com India.

Dividends

Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Rediff.com India does not pay a dividend. Twenty-First Century Fox pays out 18.3% of its earnings in the form of a dividend. Twenty-First Century Fox has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

24.1% of Twenty-First Century Fox shares are held by institutional investors. 39.4% of Twenty-First Century Fox shares are held by company insiders. Comparatively, 70.7% of Rediff.com India 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Twenty-First Century Fox and Rediff.com India, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twenty-First Century Fox 0 0 1 0 3.00
Rediff.com India 0 0 0 0 N/A

Twenty-First Century Fox currently has a consensus target price of $43.00, indicating a potential downside of 12.30%. Given Twenty-First Century Fox’s higher possible upside, research analysts plainly believe Twenty-First Century Fox is more favorable than Rediff.com India.

Risk and Volatility

Twenty-First Century Fox has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Rediff.com India has a beta of 3.09, indicating that its share price is 209% more volatile than the S&P 500.

Summary

Twenty-First Century Fox beats Rediff.com India on 9 of the 12 factors compared between the two stocks.

About Twenty-First Century Fox

Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company primarily in the United States and Canada, Europe, and internationally. 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 in entertainment media, as well as produces and licenses television programming. 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.

About Rediff.com India

Rediff.com India Limited provides online Internet based services in India and to the global Indian community. The company operates in two segments, India Online Business and US Publishing Business. Its Websites consist of channels relevant to Indian interests, such as cricket, astrology, matchmaker, and movies; content on various matters, including news and finance; search facilities; a range of community features comprising e-mail, chat, messenger, e-commerce, and broadband wireless content; and mobile value-added services, such as ring tones, picture messages, logos, wallpapers, and other related products to mobile phone users. The company also enables its customers to insert localized advertisements on national television channels by providing a platform to create an advertisement and prepare a media plan; and publishes two weekly newspapers in North America, including India Abroad and India in New York. In addition, it offers Moneywiz that provides stock market quotes, company information, and a personal portfolio tracker, as well as business news, feature articles, expert columns, and interviews; Rediff Blogs, which enables users to set up their own blogs and publish their thoughts and ideas directly and instantly on the Web; Rediff iShare, a video sharing platform; Rediff MyPage, a free online social networking product; and Get Ahead, an editorial content channel that supports a forum for questions and answers. Further, the company operates Rediff Shopping, an online marketplace which allows users to purchase products and services listed on its platform by various merchants; and offers e-mail solutions, such as Rediffmail, its flagship e-mail service, and Rediffmail PRO for small and medium sized enterprise segment. Rediff.com India Limited was founded in 1996 and is headquartered in Mumbai, India.

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