Critical Analysis: Tronc (TRNC) vs. 21st Century Fox (FOX)

Tronc (NASDAQ: TRNC) and 21st Century Fox (NASDAQ:FOX) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Volatility and Risk

Tronc has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, 21st Century Fox has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tronc and 21st Century Fox, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tronc 0 0 2 0 3.00
21st Century Fox 0 0 2 0 3.00

Tronc currently has a consensus price target of $23.00, indicating a potential upside of 39.31%. 21st Century Fox has a consensus price target of $43.00, indicating a potential upside of 15.13%. Given Tronc’s higher probable upside, research analysts clearly believe Tronc is more favorable than 21st Century Fox.

Insider & Institutional Ownership

41.4% of Tronc shares are held by institutional investors. Comparatively, 24.3% of 21st Century Fox shares are held by institutional investors. 1.7% of Tronc shares are held by insiders. Comparatively, 39.4% of 21st Century Fox shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

21st Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Tronc does not pay a dividend.

Profitability

This table compares Tronc and 21st Century Fox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tronc -0.41% 37.89% 3.66%
21st Century Fox 13.76% 17.50% 6.21%

Valuation and Earnings

This table compares Tronc and 21st Century Fox’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tronc $1.52 billion 0.38 $5.53 million $1.08 15.29
21st Century Fox $28.50 billion 2.43 $2.95 billion N/A N/A

21st Century Fox has higher revenue and earnings than Tronc.

Summary

21st Century Fox beats Tronc on 8 of the 12 factors compared between the two stocks.

Tronc Company Profile

tronc, Inc., a media company, publishes newspapers worldwide. The company operates in two segments, troncM and troncX. It publishes daily newspapers; weekly newspapers; and digital platforms, such as Websites and mobile applications. The company also provides various digital marketing services, which include the development of mobile Websites, search engine marketing and optimization, social media account management, and content marketing for its customers' Web presence for small to medium size businesses. In addition, it offers TCA, a syndication and licensing business that provides daily news service and syndicated premium content to 1,700 media and digital information publishers; and forsalebyowner.com, a national consumer-to-consumer focused real estate Website. The company was formerly known as Tribune Publishing Company and changed its name to tronc, Inc. in June 2016. tronc, Inc. was founded in 2013 and is headquartered in Chicago, Illinois.

21st Century Fox Company Profile

Twenty-First Century Fox, Inc., together with its subsidiaries, operates as a diversified media and entertainment company primarily in the United States, the United Kingdom, Continental Europe, Asia, and Latin America. It operates through Cable Network Programming, Television, and Filmed Entertainment segments. The company produces and licenses news, business news, sports, general entertainment, factual entertainment, and movie programming for distribution primarily through cable television systems, direct broadcast satellite operators, telecommunication companies, and online video distributors. It also broadcasts network programming; and operates 28 broadcast television stations, including 11 duopolies in the United States. In addition, the company produces and acquires live-action and animated motion pictures for distribution and licensing in various formats and entertainment media, as well as produces and licenses television programming. Further, it provides video advertising services, including consumer engagement and on-demand marketing campaigns; operates two San Francisco-Bay area television stations; and broadcasts and operates Telugu language entertainment channels in India. The company was formerly known as News Corporation. Twenty-First Century Fox, Inc. was founded in 1922 and is headquartered in New York, New York.

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