Financial Survey: SKY (SKYAY) versus E. W. Scripps (SSP)

SKY (OTCMKTS: SKYAY) and E. W. Scripps (NYSE:SSP) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Dividends

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SKY pays an annual dividend of $1.29 per share and has a dividend yield of 1.8%. E. W. Scripps pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. SKY pays out 41.9% of its earnings in the form of a dividend. E. W. Scripps pays out -51.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares SKY and E. W. Scripps’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SKY N/A N/A N/A
E. W. Scripps -1.44% 1.51% 0.79%

Analyst Ratings

This is a breakdown of current recommendations for SKY and E. W. Scripps, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SKY 0 1 2 0 2.67
E. W. Scripps 0 2 2 0 2.50

E. W. Scripps has a consensus target price of $19.67, indicating a potential upside of 71.31%. Given E. W. Scripps’ higher probable upside, analysts clearly believe E. W. Scripps is more favorable than SKY.

Institutional and Insider Ownership

0.1% of SKY shares are owned by institutional investors. Comparatively, 77.0% of E. W. Scripps shares are owned by institutional investors. 4.2% of E. W. Scripps shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

SKY has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, E. W. Scripps has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500.

Earnings and Valuation

This table compares SKY and E. W. Scripps’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SKY $16.50 billion 1.90 $881.46 million $3.08 23.82
E. W. Scripps $864.83 million 1.08 -$13.10 million ($0.39) -29.44

SKY has higher revenue and earnings than E. W. Scripps. E. W. Scripps is trading at a lower price-to-earnings ratio than SKY, indicating that it is currently the more affordable of the two stocks.

Summary

E. W. Scripps beats SKY on 8 of the 15 factors compared between the two stocks.

About SKY

Sky plc, together with its subsidiaries, engages in entertainment and communications businesses. The company offers pay television broadcasting and home communications services, including broadband and telephone services; over-the-top subscriptions; and HD, UHD, multiscreen, line rental, second smartcard, premium HD, and mobile TV, as well as on demand services, such as Catch Up TV and box sets. Sky plc serves approximately 22.5 million residential and commercial customers in the United Kingdom, Ireland, Italy, Germany, and Austria. The company was formerly known as British Sky Broadcasting Group plc and changed its name to Sky plc in November 2014. Sky plc was incorporated in 1988 and is headquartered in Isleworth, the United Kingdom.

About E. W. Scripps

The E. W. Scripps Company is a media enterprise with interests in television and radio broadcasting, as well as local and national digital media brands. The Company’s segments include television, radio, digital, and syndication and other. As of December 31, 2016, the Television segment included approximately 15 American Broadcasting Company (ABC) affiliates, five National Broadcasting Company (NBC) affiliates, two FOX affiliates, two Columbia Broadcasting System (CBS) affiliates and four non big-four affiliated stations. As of December 31, 2016, the radio segment owned 34 radio stations in eight markets. As of December 31, 2016, it operated 28 frequency modulation (FM) stations and six Amplitude Modulation (AM) stations. The digital segment includes the digital operations of its local television and radio businesses. Its Syndication and other segment primarily includes the syndication of news features and comics and other features for the newspaper industry.

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