CTC Media (NASDAQ: CTCM) and News Corporation (NASDAQ:NWSA) are both services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitabiliy, risk, valuation, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

92.9% of News Corporation shares are owned by institutional investors. 13.9% of News Corporation shares are owned by 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.

Profitability

This table compares CTC Media and News Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CTC Media N/A N/A N/A
News Corporation -2.64% 1.77% 1.36%

Dividends

News Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. CTC Media does not pay a dividend. News Corporation pays out -51.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for CTC Media and News Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CTC Media 0 0 0 0 N/A
News Corporation 1 2 1 0 2.00

News Corporation has a consensus target price of $14.75, suggesting a potential upside of 8.06%. Given News Corporation’s higher possible upside, analysts clearly believe News Corporation is more favorable than CTC Media.

Valuation and Earnings

This table compares CTC Media and News Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CTC Media N/A N/A N/A N/A N/A
News Corporation $8.29 billion 0.96 $736.00 million ($0.39) -35.00

News Corporation has higher revenue and earnings than CTC Media.

Summary

News Corporation beats CTC Media on 9 of the 10 factors compared between the two stocks.

CTC Media Company Profile

CTC Media, Inc., through its approximately 25% interest in CTC Investments LLC (CTC Investments), operates television channels in Russia and Kazakhstan. The Company’s segment is its investment in CTC Investments. The Company operates the CTC, Domashny, Che and CTC Love television channels in Russia and Channel 31 in Kazakhstan, as well as other media assets. CTC offers entertainment programming for the whole family and targets 10 to 45 year-old viewers. Domashny is a channel focused on 25 to 59 year-old female viewers. Domashny’s programming focuses on women’s lifestyle programming. Che is a channel that targets 25 to 49 year-old viewers, and focuses primarily on men’s interests, habits and insights. CTC Love is a channel that focuses on love and relationships. CTC Love is aimed at young girls and women, and its principal target audience is 11 to 34 year-old viewers. Channel 31 is a Kazakh channel that targets 6 to 54 year-old viewers.

News Corporation Company Profile

News Corporation is a diversified media and information services company. The Company operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other. The Company’s business consists of range of media, including news and information services, sports programming in Australia, digital real estate services, book publishing, and pay-television (TV) distribution in Australia, that are distributed under the brands, including The Wall Street Journal, Dow Jones, Herald Sun, The Sun, The Times, HarperCollins Publishers, FOX SPORTS Australia and realestate.com.au. The Company is a developing provider of digital education content, assessment and delivery services. The Company’s business component includes News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, Amplify and Foxtel. In July 2014, it completed the acquisition of Harlequin Enterprises from Torstar Corp.

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