Time (NYSE: TIME) and New Media Investment Group (NYSE:NEWM) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitabiliy, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Time and New Media Investment Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Time 0 4 1 0 2.20
New Media Investment Group 1 2 1 0 2.00

Time currently has a consensus price target of $15.20, indicating a potential upside of 7.04%. New Media Investment Group has a consensus price target of $17.33, indicating a potential upside of 27.64%. Given New Media Investment Group’s higher probable upside, analysts plainly believe New Media Investment Group is more favorable than Time.

Insider & Institutional Ownership

90.9% of Time shares are owned by institutional investors. Comparatively, 75.5% of New Media Investment Group shares are owned by institutional investors. 1.9% of Time shares are owned by company insiders. Comparatively, 5.3% of New Media Investment Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Time has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, New Media Investment Group has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Valuation and Earnings

This table compares Time and New Media Investment Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Time $3.03 billion 0.47 $383.00 million ($0.68) -20.88
New Media Investment Group $1.26 billion 0.58 $141.21 million $0.51 26.63

Time has higher revenue and earnings than New Media Investment Group. Time is trading at a lower price-to-earnings ratio than New Media Investment Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Time pays an annual dividend of $0.16 per share and has a dividend yield of 1.1%. New Media Investment Group pays an annual dividend of $1.40 per share and has a dividend yield of 10.3%. Time pays out -23.5% of its earnings in the form of a dividend. New Media Investment Group pays out 274.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Time has raised its dividend for 2 consecutive years.

Profitability

This table compares Time and New Media Investment Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Time -2.18% 7.30% 2.54%
New Media Investment Group 1.82% 4.19% 2.30%

Time Company Profile

Time Inc. is a media and content company. The Company offers a portfolio of news and lifestyle brands across a range of interest areas. As of December 31, 2016, the Company’s brands included People, Time, Fortune, Sports Illustrated, InStyle, Real Simple, Southern Living, Entertainment Weekly, Food & Wine, Travel + Leisure and Essence, as well as approximately 50 titles in the United Kingdom. The Company also offers its brands through other media and platforms including licensing, video and television, live events and paid products and services. The Company also offers events, such as the Time 100, Fortune Most Powerful Women, People’s Sexiest Man Alive, Sports Illustrated’s Sportsperson of the Year, the Essence Festival and the Food & Wine Classic in Aspen. It is a subscription marketer in the United States media industry. It also offers its advertisers a range of analytics and research services, including consumer insights, audience measurement and accountability reporting.

New Media Investment Group Company Profile

New Media Investment Group Inc. is a holding company. The Company owns, operates and invests in local media assets. The Company’s segments include Eastern US Publishing, Central US Publishing, Western US Publishing and BridgeTower. It focuses on owning and acquiring local media assets in small to mid-size markets. It is a publisher of local newspapers and related publications. As of December 25, 2016, its portfolio of media assets spanned across 538 markets and 36 states. As of December 25, 2016, its products included 631 community print publications, 538 Websites and two yellow page directories. Its directory portfolio includes Surewest Directories located in and around the Sacramento, California area, primarily in Roseville, California. The Roseville directory serves the local Roseville community. It also owns additional directory based in Mt. Shasta, California. Propel is its business services product line with digital products designed for small and midsized businesses (SMBs).

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