Critical Analysis: Tribune Media (TRCO) vs. Belo (BLC)

Belo (NYSE: BLC) and Tribune Media (NYSE:TRCO) are both cyclical consumer goods & services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

This table compares Belo and Tribune Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Belo N/A N/A N/A
Tribune Media -6.12% 4.11% 1.50%

Analyst Recommendations

This is a breakdown of current recommendations for Belo and Tribune Media, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Belo 0 0 0 0 N/A
Tribune Media 1 4 1 0 2.00

Tribune Media has a consensus price target of $43.88, suggesting a potential upside of 3.41%.

Dividends

Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Belo does not pay a dividend. Tribune Media pays out -75.2% of its earnings in the form of a dividend.

Institutional and Insider Ownership

91.6% of Tribune Media shares are held by institutional investors. 0.6% of Tribune Media shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Belo and Tribune Media’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Belo N/A N/A N/A $0.88 N/A
Tribune Media $1.95 billion 1.90 $14.24 million ($1.33) -31.90

Tribune Media has higher revenue and earnings than Belo. Tribune Media is trading at a lower price-to-earnings ratio than Belo, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Belo has a beta of 3.11, indicating that its share price is 211% more volatile than the S&P 500. Comparatively, Tribune Media has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Summary

Tribune Media beats Belo on 8 of the 11 factors compared between the two stocks.

About Belo

Belo Corp. (Belo) is a television company. The Company owns 20 television stations, including ABC, CBS, NBC, FOX, CW and MyNetwork TV (MNTV) affiliates, and their associated websites, in 15 markets across the United States. The Company also has three local and two regional news channels. Belo also has a services agreement with the owner and operator of KFWD-TV, licensed to Fort Worth, Texas. Six of the Company’s stations are located in four metropolitan areas in the United States: ABC affiliate WFAA-TV in Dallas/Fort Worth; CBS affiliate KHOU-TV in Houston; NBC affiliate KING-TV and independent KONG-TV in Seattle/Tacoma, and Independent KTVK and The CW Network (CW) affiliate KASW-TV in Phoenix. Belo’s television stations have been recognized with numerous local, state and national awards for news coverage and community service. In December 2013, Gannett Co Inc announced that it has completed the acquisition of Belo Corp.

About Tribune Media

Tribune Media Company, through its subsidiaries, operates as a media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV, a digital multicast networks; Tribune Studios, a development and production studio; Screener, an entertainment Website; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.

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