Contrasting Gannett (GCI) and Tribune Publishing (TPCO)

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Gannett (NYSE:GCI) and Tribune Publishing (NASDAQ:TPCO) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Gannett and Tribune Publishing, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gannett 1 0 1 0 2.00
Tribune Publishing 0 0 0 0 N/A

Gannett currently has a consensus price target of $12.50, suggesting a potential upside of 28.21%. Given Gannett’s higher probable upside, analysts clearly believe Gannett is more favorable than Tribune Publishing.

Earnings and Valuation

This table compares Gannett and Tribune Publishing’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gannett $3.15 billion 0.35 $6.88 million $1.03 9.47
Tribune Publishing $1.52 billion 0.31 $5.53 million $1.08 12.37

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

Profitability

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

Net Margins Return on Equity Return on Assets
Gannett 0.52% 12.75% 5.37%
Tribune Publishing 18.92% 6.90% 2.11%

Risk and Volatility

Gannett has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Tribune Publishing has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.

Institutional and Insider Ownership

97.8% of Gannett shares are held by institutional investors. Comparatively, 38.4% of Tribune Publishing shares are held by institutional investors. 1.1% of Gannett shares are held by company insiders. Comparatively, 1.7% of Tribune Publishing shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Gannett pays an annual dividend of $0.64 per share and has a dividend yield of 6.6%. Tribune Publishing does not pay a dividend. Gannett pays out 62.1% of its earnings in the form of a dividend. Gannett has raised its dividend for 3 consecutive years.

Summary

Gannett beats Tribune Publishing on 10 of the 16 factors compared between the two stocks.

About Gannett

Gannett Co., Inc. operates as a media and marketing solutions company. The company operates through Publishing and ReachLocal segments. The company offers print and digital daily and non-daily publications under the USA TODAY NETWORK brand name in the United States; and Newsquest, which has print and online publications portfolio of approximately 170 news brands and 80 magazines in the United Kingdom. Gannett Co., Inc. operations comprise 130 daily publications and digital platforms the United States and the United Kingdom; and 435 non-daily publications in the United States and 159 such titles in the United Kingdom. It also provides commercial printing, distribution, marketing, and data services; and owns s1 and Exchange & Mart businesses, and a specialist magazine business. In addition, the company offers digital marketing solutions comprising ReachSearch, ReachDisplay, ReachSocial Ads, and ReachRetargeting digital advertising solutions; ReachSite+ReachEdge, ReachSEO, ReachCast, ReachListings, and TotalLiveChat Web presence solutions; and ReachEdge, a marketing automation platform, as well as Kickserv, a cloud-based business management software for service businesses. The company offers its suite of products and solutions to local businesses through its proprietary technology platform, its sales force, and third-party agencies and resellers. It also operates in Canada, Australia, New Zealand, Japan, Germany, Austria, Brazil, and Mexico. The company was formerly known as Gannett SpinCo, Inc. and changed its name to Gannett Co., Inc. in May 2015. Gannett Co., Inc. was incorporated in 2014 and is headquartered in McLean, Virginia.

About Tribune Publishing

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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