Contrasting News (NWSA) and Rediff.com India (REDFY)

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Rediff.com India (OTCMKTS:REDFY) and News (NASDAQ:NWSA) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Insider and Institutional Ownership

61.9% of News shares are held by institutional investors. 70.7% of Rediff.com India shares are held by company insiders. Comparatively, 13.9% of News shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Rediff.com India and News, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rediff.com India 0 0 0 0 N/A
News 1 1 3 0 2.40

News has a consensus target price of $14.75, indicating a potential upside of 14.43%. Given News’ higher possible upside, analysts plainly believe News is more favorable than Rediff.com India.

Dividends

News pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. Rediff.com India does not pay a dividend. News pays out 45.5% of its earnings in the form of a dividend.

Profitability

This table compares Rediff.com India and News’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rediff.com India N/A N/A N/A
News -15.61% 2.99% 2.08%

Risk and Volatility

Rediff.com India has a beta of 2.99, indicating that its share price is 199% more volatile than the S&P 500. Comparatively, News has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Earnings and Valuation

This table compares Rediff.com India and News’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rediff.com India N/A N/A N/A N/A N/A
News $9.02 billion 0.84 -$1.51 billion $0.44 29.30

Rediff.com India has higher earnings, but lower revenue than News.

Summary

News beats Rediff.com India on 7 of the 11 factors compared between the two stocks.

About Rediff.com India

Rediff.com India Limited provides online Internet based services in India and to the global Indian community. The company operates in two segments, India Online Business and US Publishing Business. Its Websites consist of channels relevant to Indian interests, such as cricket, astrology, matchmaker, and movies; content on various matters, including news and finance; search facilities; a range of community features comprising e-mail, chat, messenger, e-commerce, and broadband wireless content; and mobile value-added services, such as ring tones, picture messages, logos, wallpapers, and other related products to mobile phone users. The company also enables its customers to insert localized advertisements on national television channels by providing a platform to create an advertisement and prepare a media plan; and publishes two weekly newspapers in North America, including India Abroad and India in New York. In addition, it offers Moneywiz that provides stock market quotes, company information, and a personal portfolio tracker, as well as business news, feature articles, expert columns, and interviews; Rediff Blogs, which enables users to set up their own blogs and publish their thoughts and ideas directly and instantly on the Web; Rediff iShare, a video sharing platform; Rediff MyPage, a free online social networking product; and Get Ahead, an editorial content channel that supports a forum for questions and answers. Further, the company operates Rediff Shopping, an online marketplace which allows users to purchase products and services listed on its platform by various merchants; and offers e-mail solutions, such as Rediffmail, its flagship e-mail service, and Rediffmail PRO for small and medium sized enterprise segment. Rediff.com India Limited was founded in 1996 and is headquartered in Mumbai, India.

About News

News Corporation, a media and information services company, creates and distributes content for consumers and businesses worldwide. It operates in five segments: News and Information Services, Book Publishing, Digital Real Estate Services, Subscription Video Services, and Other. The company distributes content and data products, including The Wall Street Journal, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, Barron's, MarketWatch, and DJX through various media channels, such as newspapers, newswires, Websites, mobile device applications, tablets and e-book readers, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates daily, Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, The Times, The Sunday Times, The Sun, The Sun on Sunday, and New York Post, as well as digital mastheads and other Websites. In addition, the company offers home-delivered shopper media that include free-standing inserts and direct mail products; in-store marketing products and services primarily to consumer packaged goods manufacturers; in-store merchandising services; and digital marketing solutions. Further, it publishes general fiction, nonfiction, children's, and religious books; and provides sports programming content to approximately 200 channels distributed through cable, satellite, and Internet protocol, as well as broadcast rights to live sporting events. Additionally, the company offers property and property-related services on its Websites and mobile applications, as well as residential and commercial property Websites; online real estate services; and professional software and services products, which comprise Top Producer, FiveStreet, and ListHub. News Corporation is headquartered in New York, New York.

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