Critical Contrast: John Wiley & Sons (NYSE:WLYB) & FOX (NASDAQ:FOX)

John Wiley & Sons (NYSE:WLYB – Get Free Report) and FOX (NASDAQ:FOX – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for John Wiley & Sons and FOX, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
John Wiley & Sons 0 1 0 0 2.00
FOX 1 0 7 3 3.09

FOX has a consensus price target of $76.56, indicating a potential upside of 33.79%. Given FOX’s stronger consensus rating and higher possible upside, analysts plainly believe FOX is more favorable than John Wiley & Sons.

Profitability

This table compares John Wiley & Sons and FOX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
John Wiley & Sons 11.90% 27.99% 8.16%
FOX 9.84% 20.64% 10.76%

Insider & Institutional Ownership

0.5% of John Wiley & Sons shares are owned by institutional investors. Comparatively, 26.4% of FOX shares are owned by institutional investors. 29.7% of John Wiley & Sons shares are owned by insiders. Comparatively, 23.1% of FOX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares John Wiley & Sons and FOX”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
John Wiley & Sons $1.68 billion 1.59 $221.62 million $3.78 13.90
FOX $17.13 billion 1.40 $1.69 billion $3.83 14.94

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

Volatility and Risk

John Wiley & Sons has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, FOX has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Dividends

John Wiley & Sons pays an annual dividend of $1.43 per share and has a dividend yield of 2.7%. FOX pays an annual dividend of $0.58 per share and has a dividend yield of 1.0%. John Wiley & Sons pays out 37.8% of its earnings in the form of a dividend. FOX pays out 15.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John Wiley & Sons has raised its dividend for 26 consecutive years and FOX has raised its dividend for 4 consecutive years. John Wiley & Sons is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

FOX beats John Wiley & Sons on 12 of the 18 factors compared between the two stocks.

About John Wiley & Sons

(Get Free Report)

John Wiley & Sons, Inc. engages in the provision of research and learning materials. It operates through the following segments: Research, Learning, and Held for Sale or Sold. The Research segment consists of research publishing and research solutions. The Learning segment includes academic and professional reporting lines and consists of publishing and related knowledge solutions. The Held for Sale or Sold segment offers businesses held-for-sale including Wiley Edge and CrossKnowledge, University Services and Tuition Manager, and Test Prep and Advancement Courses. The company was founded by Charles Wiley in 1807 and is headquartered in Hoboken, NJ.

About FOX

(Get Free Report)

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.

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