Financial Analysis: FOX (NASDAQ:FOXA) vs. Trade Desk (NASDAQ:TTD)

Trade Desk (NASDAQ:TTD) 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 profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Trade Desk and FOX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trade Desk	9	26	4	0	1.87
FOX	0	9	13	2	2.71

Trade Desk presently has a consensus price target of $18.16, suggesting a potential upside of 39.73%. FOX has a consensus price target of $78.12, suggesting a potential upside of 17.29%. Given Trade Desk’s higher probable upside, analysts clearly believe Trade Desk is more favorable than FOX.

Insider and Institutional Ownership

67.8% of Trade Desk shares are owned by institutional investors. Comparatively, 52.5% of FOX shares are owned by institutional investors. 11.7% of Trade Desk shares are owned by insiders. Comparatively, 20.9% of FOX shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Trade Desk and FOX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trade Desk	13.61%	16.09%	6.90%
FOX	9.84%	20.64%	10.76%

Volatility & Risk

Trade Desk has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, FOX has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Earnings & Valuation

This table compares Trade Desk and FOX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trade Desk	$2.90 billion	2.11	$443.30 million	$0.84	15.48
FOX	$17.13 billion	1.63	$1.69 billion	$3.83	17.39

FOX has higher revenue and earnings than Trade Desk. Trade Desk is trading at a lower price-to-earnings ratio than FOX, indicating that it is currently the more affordable of the two stocks.

Summary

FOX beats Trade Desk on 10 of the 15 factors compared between the two stocks.

About Trade Desk

The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.

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.