New York Times Company (The) (NYSE: NYT) and tronc (NASDAQ:TRNC) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitabiliy and valuation.

Risk and Volatility

New York Times Company (The) has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, tronc has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.

Profitability

This table compares New York Times Company (The) and tronc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New York Times Company (The) 3.21% 11.53% 4.20%
tronc 0.64% 57.51% 5.89%

Earnings and Valuation

This table compares New York Times Company (The) and tronc’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
New York Times Company (The) $1.57 billion 1.82 $215.54 million $0.31 57.10
tronc $1.57 billion 0.27 $122.82 million $0.28 46.00

tronc is trading at a lower price-to-earnings ratio than New York Times Company (The), indicating that it is currently the more affordable of the two stocks.

Dividends

New York Times Company (The) pays an annual dividend of $0.16 per share and has a dividend yield of 0.9%. tronc does not pay a dividend. New York Times Company (The) pays out 51.6% of its earnings in the form of a dividend. tronc has increased its dividend for 3 consecutive years.

Institutional & Insider Ownership

63.5% of New York Times Company (The) shares are held by institutional investors. Comparatively, 37.1% of tronc shares are held by institutional investors. 5.7% of New York Times Company (The) shares are held by insiders. Comparatively, 41.2% of tronc shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for New York Times Company (The) and tronc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New York Times Company (The) 1 2 0 0 1.67
tronc 0 0 1 0 3.00

New York Times Company (The) presently has a consensus target price of $11.40, indicating a potential downside of 35.59%. tronc has a consensus target price of $21.00, indicating a potential upside of 63.04%. Given tronc’s stronger consensus rating and higher possible upside, analysts plainly believe tronc is more favorable than New York Times Company (The).

About New York Times Company (The)

The New York Times Company is a media company focused on creating, collecting and distributing news and information. The Company’s principal business consists of distributing content generated by its newsroom through its print, Web and mobile platforms. In addition, it distributes selected content on third-party platforms. The Company includes newspapers, print and digital products and investments. The Company’s businesses include newspapers, such as The New York Times (The Times); Websites, including NYTimes.com; mobile applications, including The Times’s news applications, as well as interest-specific applications, such as NYT Cooking, Crossword and others, and related businesses, such as The Times news services division, product review and recommendation Websites The Wirecutter and The Sweethome, digital archive distribution, NYT Live (its live events business) and other products and services under The Times brand.

About tronc

tronc, Inc., formerly Tribune Publishing Company, is a media company. As of December 25, 2016, the Company operated over 150 titles in nine markets. Its portfolio of news and information brands are in markets, including Los Angeles and San Diego, California; Chicago, Illinois; Fort Lauderdale and Orlando, Florida; Baltimore, Maryland; Hartford, Connecticut; Allentown, Pennsylvania, and Newport News, Virginia. The Company also offers an array of customized marketing solutions, and publishes a number of niche products, including Hoy and El Sentinel. troncM’s media groups include the Chicago Tribune Media Group, the Los Angeles Times Media Group, the San Diego Media Group, the Sun Sentinel Media Group, the Orlando Sentinel Media Group, The Baltimore Sun Media Group, the Morning Call Media Group and the Daily Press Media Group. troncX consists of the Company’s digital revenues and related digital expenses from more than 130 digital platforms online and mobile applications.

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