Financial Contrast: Tribune Publishing (NASDAQ:TPCO) versus News (NWSA)

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News (NASDAQ:NWSA) and Tribune Publishing (NASDAQ:TPCO) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Dividends

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for News and Tribune Publishing, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
News 1 1 3 0 2.40
Tribune Publishing 0 0 0 0 N/A

News presently has a consensus target price of $14.75, suggesting a potential upside of 18.28%. Given News’ higher possible upside, analysts clearly believe News is more favorable than Tribune Publishing.

Profitability

This table compares News and Tribune Publishing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
News -15.61% 2.99% 2.08%
Tribune Publishing 18.92% 6.90% 2.11%

Institutional & Insider Ownership

61.9% of News shares are held by institutional investors. Comparatively, 38.4% of Tribune Publishing shares are held by institutional investors. 13.9% of News shares are held by insiders. Comparatively, 1.7% of Tribune Publishing shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares News and Tribune Publishing’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
News $9.02 billion 0.81 -$1.51 billion $0.44 28.34
Tribune Publishing $1.52 billion 0.33 $5.53 million $1.08 13.24

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

Volatility & Risk

News has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Tribune Publishing has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.

Summary

Tribune Publishing beats News on 8 of the 15 factors compared between the two stocks.

News Company Profile

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.

Tribune Publishing Company Profile

Tribune Publishing Company, 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 tronc, Inc. and changed its name to Tribune Publishing Company in October 2018. Tribune Publishing Company was founded in 2013 and is headquartered in Chicago, Illinois.

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