Scripps Networks Interactive (NASDAQ: SNI) and E. W. Scripps (NYSE:SSP) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitabiliy.

Analyst Recommendations

This is a breakdown of current ratings for Scripps Networks Interactive and E. W. Scripps, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scripps Networks Interactive 2 7 4 0 2.15
E. W. Scripps 0 2 1 0 2.33

Scripps Networks Interactive currently has a consensus target price of $76.92, suggesting a potential downside of 1.49%. E. W. Scripps has a consensus target price of $23.00, suggesting a potential upside of 18.92%. Given E. W. Scripps’ stronger consensus rating and higher possible upside, analysts plainly believe E. W. Scripps is more favorable than Scripps Networks Interactive.

Earnings and Valuation

This table compares Scripps Networks Interactive and E. W. Scripps’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Scripps Networks Interactive $3.44 billion 2.95 $1.55 billion $4.47 17.47
E. W. Scripps $944.55 million 1.69 $175.34 million $0.73 26.49

Scripps Networks Interactive has higher revenue and earnings than E. W. Scripps. Scripps Networks Interactive is trading at a lower price-to-earnings ratio than E. W. Scripps, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Scripps Networks Interactive has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, E. W. Scripps has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500.

Profitability

This table compares Scripps Networks Interactive and E. W. Scripps’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scripps Networks Interactive 16.94% 30.71% 10.99%
E. W. Scripps -0.92% -0.82% -0.45%

Institutional and Insider Ownership

69.6% of Scripps Networks Interactive shares are owned by institutional investors. Comparatively, 73.9% of E. W. Scripps shares are owned by institutional investors. 2.5% of Scripps Networks Interactive shares are owned by insiders. Comparatively, 4.2% of E. W. Scripps shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Scripps Networks Interactive pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. E. W. Scripps does not pay a dividend. Scripps Networks Interactive pays out 26.8% of its earnings in the form of a dividend.

Summary

Scripps Networks Interactive beats E. W. Scripps on 9 of the 16 factors compared between the two stocks.

About Scripps Networks Interactive

Scripps Networks Interactive, Inc. is a developer of lifestyle-oriented content, providing primarily home, food, travel and other lifestyle-related programing. The Company’s content is distributed through multiple methods, including television, the Internet, digital platforms and licensing arrangements. The Company’s segments include U.S. Networks, International Networks, and Corporate and Other. As of December 31, 2016, the Company’s U.S. Networks segment consisted of six national television networks: HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel and Great American Country. The Company’s International Networks includes the TVN S.A. (TVN) portfolio of networks and other lifestyle-oriented networks available in the United Kingdom, other European markets, the Middle East and Africa (EMEA), Asia Pacific (APAC) and Latin America. In addition to the broadcast networks, it also licenses a portion of its programing to other broadcasters around the world.

About E. W. Scripps

The E. W. Scripps Company is a media enterprise with interests in television and radio broadcasting, as well as local and national digital media brands. The Company’s segments include television, radio, digital, and syndication and other. As of December 31, 2016, the Television segment included approximately 15 American Broadcasting Company (ABC) affiliates, five National Broadcasting Company (NBC) affiliates, two FOX affiliates, two Columbia Broadcasting System (CBS) affiliates and four non big-four affiliated stations. As of December 31, 2016, the radio segment owned 34 radio stations in eight markets. As of December 31, 2016, it operated 28 frequency modulation (FM) stations and six Amplitude Modulation (AM) stations. The digital segment includes the digital operations of its local television and radio businesses. Its Syndication and other segment primarily includes the syndication of news features and comics and other features for the newspaper industry.

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