Head to Head Survey: World Wrestling Entertainment (WWE) & DHX Media (DHXM)
World Wrestling Entertainment (NYSE: WWE) and DHX Media (NASDAQ:DHXM) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Volatility and Risk
World Wrestling Entertainment has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, DHX Media has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
World Wrestling Entertainment pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. DHX Media pays an annual dividend of $0.06 per share and has a dividend yield of 2.0%. World Wrestling Entertainment pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DHX Media pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DHX Media is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares World Wrestling Entertainment and DHX Media’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|World Wrestling Entertainment||$762.15 million||2.56||$81.40 million||$0.45||56.25|
|DHX Media||$245.75 million||1.66||$55.76 million||$0.07||43.57|
World Wrestling Entertainment has higher revenue and earnings than DHX Media. DHX Media is trading at a lower price-to-earnings ratio than World Wrestling Entertainment, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for World Wrestling Entertainment and DHX Media, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|World Wrestling Entertainment||0||3||6||0||2.67|
World Wrestling Entertainment presently has a consensus price target of $24.86, suggesting a potential downside of 1.79%. DHX Media has a consensus price target of $9.13, suggesting a potential upside of 199.18%. Given DHX Media’s higher probable upside, analysts clearly believe DHX Media is more favorable than World Wrestling Entertainment.
Insider and Institutional Ownership
49.5% of World Wrestling Entertainment shares are owned by institutional investors. 49.8% of World Wrestling Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares World Wrestling Entertainment and DHX Media’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|World Wrestling Entertainment||4.56%||17.05%||6.84%|
World Wrestling Entertainment beats DHX Media on 11 of the 15 factors compared between the two stocks.
World Wrestling Entertainment Company Profile
World Wrestling Entertainment, Inc. (WWE) is an integrated media and entertainment company. The Company’s segments are Network, Television, Home Entertainment, Digital Media, Live Events, Licensing, Venue Merchandise, WWEShop, WWE Studios, and Corporate and Other. The Company is engaged in the production and distribution of content through various channels, including its WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring its brands. Its Network, Television, Home Entertainment and Digital Media are individual segments that comprise the Media Division. Its Live Events, Licensing, Venue Merchandise and WWEShop are individual segments that comprise the Consumer Products Division. Its Network segment consists of subscriptions to WWE Network. The Company’s Television segment consists of television rights fees and advertising.
DHX Media Company Profile
DHX Media Ltd is a Canada-based creator, producer, distributor, licensor and broadcaster of kids and family television and film productions. The Company develops, produces and distributes films and television programs for the domestic and international market, broadcasts films and television programs for the domestic markets, as well, the Company manages copyrights, licensing and brands for third parties. It operates through three segments being: Content Business, Copyright Promotions Licensing Group Ltd. (CPLG) and 8504601 Canada Inc. (DHX Television). The Content Business segment includes production, distribution and merchandising operations. The CPLG segment manages copyrights, licensing and brands for third parties. It has five business lines: production (including production service); library and distribution (including digital distribution) of its third party acquired titles; television broadcasting; merchandising and licensing, and new media and interactive.
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