Critical Analysis: Lee Enterprises (NYSE:LEE) & Daily Journal (DJCO)

Lee Enterprises (NYSE: LEE) and Daily Journal (NASDAQ:DJCO) are both small-cap cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Risk & Volatility

Lee Enterprises has a beta of 2.1, indicating that its share price is 110% more volatile than the S&P 500. Comparatively, Daily Journal has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Valuation & Earnings

This table compares Lee Enterprises and Daily Journal’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lee Enterprises $566.94 million 0.25 $27.48 million $0.50 4.90
Daily Journal $41.38 million 7.67 -$910,000.00 ($0.66) -348.58

Lee Enterprises has higher revenue and earnings than Daily Journal. Daily Journal is trading at a lower price-to-earnings ratio than Lee Enterprises, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

31.9% of Lee Enterprises shares are held by institutional investors. Comparatively, 37.7% of Daily Journal shares are held by institutional investors. 8.8% of Lee Enterprises shares are held by insiders. Comparatively, 20.4% of Daily Journal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Lee Enterprises and Daily Journal, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lee Enterprises 0 0 0 0 N/A
Daily Journal 0 0 0 0 N/A


This table compares Lee Enterprises and Daily Journal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lee Enterprises 9.04% -16.39% 2.58%
Daily Journal -2.22% -0.63% -0.36%


Lee Enterprises beats Daily Journal on 7 of the 11 factors compared between the two stocks.

Lee Enterprises Company Profile

Lee Enterprises, Incorporated is a provider of local news and information, and a platform for print and digital advertising. The Company’s products included 46 daily and 34 Sunday newspapers, 300 weekly newspapers, and classified and niche publications, as of September 25, 2016. The Company also provides a range of digital products, including video, digital couponing, behavioral targeting, audience retargeting, banner advertisements and social networking. It provides digital marketing services to small and midsized businesses (SMBs), including search engine marketing (SEM), social media, audience extension, business profiles, and Website hosting and design. It offers small business solutions, including search engine optimization (SEO), local online marketing, social media marketing, video advertising and Website design. The markets it caters to are located primarily in the Midwest, Mountain West and West regions of the United States.

Daily Journal Company Profile

Daily Journal Corporation publishes newspapers and Websites covering California and Arizona, and produces various specialized information services. The Company also serves as a newspaper representative specializing in public notice advertising. It operates through two segments: Traditional Business and Journal Technologies. The Traditional Business segment provides newspaper publishing and related services. The Journal Technologies segment supplies case management software systems and related products to courts, prosecutor and public defender offices, probation departments and other justice agencies, including administrative law organizations, city and county governments and bar associations. These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other justice partners and to extend electronic services to bar members and the public. Its subsidiary is Journal Technologies, Inc. (Journal Technologies).

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