Comparing New Media Investment Group (NEWM) and New York Times Co Class A (NYT)

New Media Investment Group (NYSE: NEWM) and New York Times Co Class A (NYSE:NYT) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Earnings and Valuation

This table compares New Media Investment Group and New York Times Co Class A’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Media Investment Group $1.34 billion 0.81 -$910,000.00 $0.54 33.22
New York Times Co Class A $1.68 billion 2.31 $4.29 million $0.80 29.31

New York Times Co Class A has higher revenue and earnings than New Media Investment Group. New York Times Co Class A is trading at a lower price-to-earnings ratio than New Media Investment Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

New Media Investment Group has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, New York Times Co Class A has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Dividends

New Media Investment Group pays an annual dividend of $1.48 per share and has a dividend yield of 8.2%. New York Times Co Class A pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. New Media Investment Group pays out 274.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York Times Co Class A pays out 20.0% of its earnings in the form of a dividend. New Media Investment Group has increased its dividend for 3 consecutive years. New Media Investment Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

72.6% of New Media Investment Group shares are owned by institutional investors. Comparatively, 79.2% of New York Times Co Class A shares are owned by institutional investors. 2.2% of New Media Investment Group shares are owned by company insiders. Comparatively, 5.2% of New York Times Co Class A shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for New Media Investment Group and New York Times Co Class A, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Media Investment Group 0 0 0 0 N/A
New York Times Co Class A 0 2 2 0 2.50

New York Times Co Class A has a consensus target price of $21.67, suggesting a potential downside of 7.60%. Given New York Times Co Class A’s higher probable upside, analysts plainly believe New York Times Co Class A is more favorable than New Media Investment Group.

Profitability

This table compares New Media Investment Group and New York Times Co Class A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Media Investment Group 0.15% 3.42% 1.80%
New York Times Co Class A 0.77% 15.58% 6.60%

Summary

New York Times Co Class A beats New Media Investment Group on 13 of the 16 factors compared between the two stocks.

About New Media Investment Group

New Media Investment Group Inc. invests in, owns, and operates local media assets in the United States. The company's principal products include 142 daily newspapers with total paid circulation of approximately 1.5 million; 326 weekly newspapers with total paid circulation of approximately 318,000 and total free circulation of approximately 2.0 million; 140 shoppers with total circulation of approximately 3.5 million; and 569 locally-focused Websites, including Internet and mobile devices with approximately 290 million page views per month. Its principal products also comprise 2 yellow page directories with a distribution of approximately 290,000 that cover a population of approximately 419,000 people; 70 business publications; and UpCurve Cloud and ThriveHive digital marketing services. In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it produces approximately 250 annual events with a collective attendance approximately 300,000, such as themed expo, signature event, and white label event services. Additionally, the company offers print and online products that offer local market news and information on various topics comprising local news and politics, community and regional events, youth sports, opinion and editorial pages, local schools, obituaries, weddings, and police reports, as well as print and digital marketing products, and commercial printing services. It reaches approximately 22 million people per week; and serves approximately 215,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York.

About New York Times Co Class A

The New York Times Company, together with its subsidiaries, provides news and information for readers and viewers across various platforms worldwide. The company provides The New York Times (The Times), a daily and Sunday newspaper in the United States, as well as international edition of The Times; and operates the NYTimes.com Website. It also transmits articles, graphics, and photographs from The Times and other publications to approximately 1,800 newspapers, magazines, and Websites; and offers magazine licensing, news digests, book development, and rights and permissions. In addition, the company engages in the NYT Live business, a platform for its live journalism; and digital archive distribution, which licenses electronic databases to resellers in the business, professional, and library markets. Further, it develops mobile applications, including Crossword and Cooking products; and operates Wirecutter, a product review and recommendation Website that serves as a guide to technology gear, home products, and other consumer goods, as well as offers digital marketing agency and other products and services. The New York Times Company was founded in 1896 and is headquartered in New York, New York.

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