Head-To-Head Analysis: News (NWS) versus tronc (TRNC)

News (NASDAQ: NWS) and tronc (NASDAQ:TRNC) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Risk & Volatility

News has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, tronc has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.

Profitability

This table compares News and tronc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
News -7.96% 2.27% 1.74%
tronc 1.67% 65.52% 5.80%

Dividends

News pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. tronc does not pay a dividend. News pays out -17.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for News and tronc, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
News 0 0 1 0 3.00
tronc 0 0 1 0 3.00

Institutional and Insider Ownership

9.5% of News shares are held by institutional investors. Comparatively, 36.0% of tronc shares are held by institutional investors. 39.4% of News shares are held by insiders. Comparatively, 41.2% of tronc shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares News and tronc’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
News $8.14 billion 1.20 -$738.00 million ($1.13) -14.82
tronc $1.61 billion 0.37 $6.53 million $0.71 24.99

tronc has lower revenue, but higher earnings than News. News is trading at a lower price-to-earnings ratio than tronc, indicating that it is currently the more affordable of the two stocks.

Summary

tronc beats News on 7 of the 13 factors compared between the two stocks.

News Company Profile

News Corporation is a diversified media and information services company. The Company operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other. The Company’s business consists of range of media, including news and information services, sports programming in Australia, digital real estate services, book publishing, and pay-television (TV) distribution in Australia, that are distributed under the brands, including The Wall Street Journal, Dow Jones, Herald Sun, The Sun, The Times, HarperCollins Publishers, FOX SPORTS Australia and realestate.com.au. The Company is a developing provider of digital education content, assessment and delivery services. The Company’s business component includes News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, Amplify and Foxtel. In July 2014, it completed the acquisition of Harlequin Enterprises from Torstar Corp.

tronc Company Profile

tronc, Inc., formerly Tribune Publishing Company, is a media company. As of December 25, 2016, the Company operated over 150 titles in nine markets. Its portfolio of news and information brands are in markets, including Los Angeles and San Diego, California; Chicago, Illinois; Fort Lauderdale and Orlando, Florida; Baltimore, Maryland; Hartford, Connecticut; Allentown, Pennsylvania, and Newport News, Virginia. The Company also offers an array of customized marketing solutions, and publishes a number of niche products, including Hoy and El Sentinel. troncM’s media groups include the Chicago Tribune Media Group, the Los Angeles Times Media Group, the San Diego Media Group, the Sun Sentinel Media Group, the Orlando Sentinel Media Group, The Baltimore Sun Media Group, the Morning Call Media Group and the Daily Press Media Group. troncX consists of the Company’s digital revenues and related digital expenses from more than 130 digital platforms online and mobile applications.

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