FOX (NASDAQ:FOX – Get Free Report) and John Wiley & Sons (NYSE:WLYB – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Insider & Institutional Ownership
26.4% of FOX shares are held by institutional investors. Comparatively, 0.5% of John Wiley & Sons shares are held by institutional investors. 23.1% of FOX shares are held by company insiders. Comparatively, 29.7% of John Wiley & Sons shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for FOX and John Wiley & Sons, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FOX | 1 | 0 | 7 | 3 | 3.09 |
| John Wiley & Sons | 0 | 1 | 0 | 0 | 2.00 |
Risk & Volatility
FOX has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, John Wiley & Sons has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Earnings and Valuation
This table compares FOX and John Wiley & Sons”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FOX | $17.13 billion | 1.37 | $1.69 billion | $3.83 | 14.59 |
| John Wiley & Sons | $1.67 billion | 1.46 | $221.62 million | $3.78 | 12.67 |
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.
Profitability
This table compares FOX and John Wiley & Sons’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FOX | 9.84% | 20.64% | 10.76% |
| John Wiley & Sons | 11.90% | 27.99% | 8.16% |
Dividends
FOX pays an annual dividend of $0.58 per share and has a dividend yield of 1.0%. John Wiley & Sons pays an annual dividend of $1.43 per share and has a dividend yield of 3.0%. FOX pays out 15.1% of its earnings in the form of a dividend. John Wiley & Sons pays out 37.8% 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. FOX has increased its dividend for 4 consecutive years and John Wiley & Sons has increased its dividend for 26 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 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.
About John Wiley & Sons
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.
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