Is DocuSign Stock Undervalued?
Digital signature software business DocuSign (NASDAQ:DOCU) has been struggling over…
| Company | Revenue Forecast | Earnings Forecast | Revenue Growth Forecast | Earnings Growth Forecast | Analyst Price Target Median |
|---|---|---|---|---|---|
|
NWS
News Corp.
|
$2.1B | $0.19 | 2.72% | -11.77% | $26.50 |
|
DIS
The Walt Disney Co.
|
$22.8B | $1.02 | 3.83% | 12.46% | $132.50 |
|
FOXA
Fox Corp.
|
$3.6B | $1.10 | -1.17% | -36.86% | $73.22 |
| Company | Price | Analyst Target | Market Cap | P/E Ratio | Dividend per Share | Dividend Yield | Price / LTM Sales |
|---|---|---|---|---|---|---|---|
|
NWS
News Corp.
|
$30.00 | $26.50 | $16.8B | 37.36x | $0.10 | 0.67% | 2.01x |
|
DIS
The Walt Disney Co.
|
$114.48 | $132.50 | $204.4B | 16.71x | $0.75 | 1.09% | 2.20x |
|
FOXA
Fox Corp.
|
$73.91 | $73.22 | $32.8B | 16.63x | $0.28 | 0.74% | 2.06x |
| Company | Total Debt / Total Capital | Beta | Debt to Equity | Quick Ratio |
|---|---|---|---|---|
|
NWS
News Corp.
|
25.17% | 0.698 | 14.57% | 1.53x |
|
DIS
The Walt Disney Co.
|
29% | 2.271 | 21.39% | 0.47x |
|
FOXA
Fox Corp.
|
37.9% | 0.641 | 26.4% | 2.92x |
| Company | Gross Profit | Operating Income | Return on Invested Capital | Return on Common Equity | EBIT Margin | Free Cash Flow |
|---|---|---|---|---|---|---|
|
NWS
News Corp.
|
$1.1B | $221M | 5.26% | 7.06% | 10.31% | -$1M |
|
DIS
The Walt Disney Co.
|
$7.1B | $2.6B | 8.67% | 12.22% | 11.7% | $2.6B |
|
FOXA
Fox Corp.
|
$1.6B | $967M | 10.43% | 17.25% | 25.87% | -$234M |
The Walt Disney Co. has a net margin of 7% compared to News Corp.'s net margin of 6.42%. News Corp.'s return on equity of 7.06% beat The Walt Disney Co.'s return on equity of 12.22%.
| Company | Gross Margin | Earnings Per Share | Invested Capital |
|---|---|---|---|
|
NWS
News Corp.
|
50.51% | $0.20 | $12.2B |
|
DIS
The Walt Disney Co.
|
31.48% | $0.73 | $159.5B |
News Corp. has a consensus price target of $26.50, signalling downside risk potential of -3.33%. On the other hand The Walt Disney Co. has an analysts' consensus of $132.50 which suggests that it could grow by 15.74%. Given that The Walt Disney Co. has higher upside potential than News Corp., analysts believe The Walt Disney Co. is more attractive than News Corp..
| Company | Buy Ratings | Hold Ratings | Sell Ratings |
|---|---|---|---|
|
NWS
News Corp.
|
4 | 2 | 0 |
|
DIS
The Walt Disney Co.
|
20 | 6 | 1 |
News Corp. has a beta of 0.943, which suggesting that the stock is 5.659% less volatile than S&P 500. In comparison The Walt Disney Co. has a beta of 1.495, suggesting its more volatile than the S&P 500 by 49.464%.
News Corp. has a quarterly dividend of $0.10 per share corresponding to a yield of 0.67%. The Walt Disney Co. offers a yield of 1.09% to investors and pays a quarterly dividend of $0.75 per share. News Corp. pays 24.56% of its earnings as a dividend. The Walt Disney Co. pays out 14.6% of its earnings as a dividend. Both of these payout ratios are sufficient to cover dividend payouts with earnings for the foreseeable future.
News Corp. quarterly revenues are $2.1B, which are smaller than The Walt Disney Co. quarterly revenues of $22.5B. News Corp.'s net income of $150M is lower than The Walt Disney Co.'s net income of $1.4B. Notably, News Corp.'s price-to-earnings ratio is 37.36x while The Walt Disney Co.'s PE ratio is 16.71x. Generally a lower price-to-earnings ratio signals a stock is trading at a lower multiple of earnings and is a better value. Another key metric is the price-to-sales ratio, which for News Corp. is 2.01x versus 2.20x for The Walt Disney Co.. Usually stocks with elevated PS ratios are considered overvalued.
| Company | Price/Sales Ratio | Price/Earnings Ratio | Quarterly Revenue | Quarterly Net Income |
|---|---|---|---|---|
|
NWS
News Corp.
|
2.01x | 37.36x | $2.1B | $150M |
|
DIS
The Walt Disney Co.
|
2.20x | 16.71x | $22.5B | $1.4B |
Fox Corp. has a net margin of 7% compared to News Corp.'s net margin of 16.29%. News Corp.'s return on equity of 7.06% beat Fox Corp.'s return on equity of 17.25%.
| Company | Gross Margin | Earnings Per Share | Invested Capital |
|---|---|---|---|
|
NWS
News Corp.
|
50.51% | $0.20 | $12.2B |
|
FOXA
Fox Corp.
|
41.63% | $1.32 | $19.8B |
News Corp. has a consensus price target of $26.50, signalling downside risk potential of -3.33%. On the other hand Fox Corp. has an analysts' consensus of $73.22 which suggests that it could fall by -0.94%. Given that News Corp. has more downside risk than Fox Corp., analysts believe Fox Corp. is more attractive than News Corp..
| Company | Buy Ratings | Hold Ratings | Sell Ratings |
|---|---|---|---|
|
NWS
News Corp.
|
4 | 2 | 0 |
|
FOXA
Fox Corp.
|
9 | 9 | 0 |
News Corp. has a beta of 0.943, which suggesting that the stock is 5.659% less volatile than S&P 500. In comparison Fox Corp. has a beta of 0.507, suggesting its less volatile than the S&P 500 by 49.311%.
News Corp. has a quarterly dividend of $0.10 per share corresponding to a yield of 0.67%. Fox Corp. offers a yield of 0.74% to investors and pays a quarterly dividend of $0.28 per share. News Corp. pays 24.56% of its earnings as a dividend. Fox Corp. pays out 11% of its earnings as a dividend. Both of these payout ratios are sufficient to cover dividend payouts with earnings for the foreseeable future.
News Corp. quarterly revenues are $2.1B, which are smaller than Fox Corp. quarterly revenues of $3.7B. News Corp.'s net income of $150M is lower than Fox Corp.'s net income of $609M. Notably, News Corp.'s price-to-earnings ratio is 37.36x while Fox Corp.'s PE ratio is 16.63x. Generally a lower price-to-earnings ratio signals a stock is trading at a lower multiple of earnings and is a better value. Another key metric is the price-to-sales ratio, which for News Corp. is 2.01x versus 2.06x for Fox Corp.. Usually stocks with elevated PS ratios are considered overvalued.
| Company | Price/Sales Ratio | Price/Earnings Ratio | Quarterly Revenue | Quarterly Net Income |
|---|---|---|---|---|
|
NWS
News Corp.
|
2.01x | 37.36x | $2.1B | $150M |
|
FOXA
Fox Corp.
|
2.06x | 16.63x | $3.7B | $609M |
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