Critical Contrast: DHX Media (DHXM) & Its Peers

DHX Media (NASDAQ: DHXM) is one of 25 publicly-traded companies in the “Entertainment Production” industry, but how does it weigh in compared to its competitors? We will compare DHX Media to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Profitability

This table compares DHX Media and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DHX Media 4.46% 5.05% 1.91%
DHX Media Competitors 2.62% 10.62% 3.41%

Volatility & Risk

DHX Media has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, DHX Media’s competitors have a beta of 0.92, suggesting that their average stock price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for DHX Media and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DHX Media 0 3 4 0 2.57
DHX Media Competitors 105 481 1232 24 2.64

DHX Media currently has a consensus target price of $9.13, indicating a potential upside of 157.04%. As a group, “Entertainment Production” companies have a potential upside of 9.75%. Given DHX Media’s higher possible upside, analysts plainly believe DHX Media is more favorable than its competitors.

Institutional and Insider Ownership

46.5% of shares of all “Entertainment Production” companies are held by institutional investors. 27.7% of shares of all “Entertainment Production” companies 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.

Earnings & Valuation

This table compares DHX Media and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
DHX Media $245.75 million $55.76 million 50.71
DHX Media Competitors $6.27 billion $1.49 billion 140.28

DHX Media’s competitors have higher revenue and earnings than DHX Media. DHX Media is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

DHX Media pays an annual dividend of $0.06 per share and has a dividend yield of 1.7%. 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. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.9% of their earnings in the form of a dividend.

Summary

DHX Media competitors beat DHX Media on 11 of the 14 factors compared.

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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