Critical Comparison: ITV (OTC:ITVPY) and Adeia (NASDAQ:ADEA)

Adeia (NASDAQ:ADEA) and ITV (OTC:ITVPY) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Profitability

This table compares Adeia and ITV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adeia	17.19%	32.81%	11.24%
ITV	N/A	N/A	N/A

Valuation and Earnings

This table compares Adeia and ITV”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adeia	$376.02 million	3.89	$64.62 million	$0.57	23.86
ITV	$4.50 billion	0.85	$261.22 million	N/A	N/A

ITV has higher revenue and earnings than Adeia.

Risk & Volatility

Adeia has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, ITV has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Adeia and ITV, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adeia	0	0	3	0	3.00
ITV	0	0	0	0	0.00

Adeia presently has a consensus price target of $18.33, suggesting a potential upside of 34.80%. Given Adeia’s stronger consensus rating and higher possible upside, research analysts plainly believe Adeia is more favorable than ITV.

Dividends

Adeia pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. ITV pays an annual dividend of $0.71 per share and has a dividend yield of 6.9%. Adeia pays out 35.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

97.4% of Adeia shares are held by institutional investors. Comparatively, 51.4% of ITV shares are held by institutional investors. 0.4% of Adeia shares are held by insiders. Comparatively, 0.0% of ITV shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Adeia beats ITV on 9 of the 14 factors compared between the two stocks.

About Adeia

Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, California.

About ITV

ITV plc, an integrated production, broadcasting, and streaming company, which creates, owns, and distributes content on various platforms worldwide. It operates through ITV Studios and Media & Entertainment segments. The ITV Studios segment creates and produces programs and formats that include sports, drama, entertainment, factual, and news for its own channels and other broadcasters. The segment also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Canada, Australia, Germany, France, Italy, Spain, the Netherlands, Sweden, Norway, Finland, and Denmark. In addition, this segment engages in licensing its finished programmes, formats, and third-party content internationally, as well as finances productions. The Media & Entertainment segment broadcasts and streams various contents on its family of free-to-air TV channels; and offers television advertising services. The company also delivers content through linear television broadcasting, as well as on the ITV Hub, BritBox UK, ITVX, catch up services on pay platforms, and through direct content deals. In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Premium subscription services. The company was founded in 1955 is based in London, the United Kingdom.