News Corporation (NASDAQ: NWS) and tronc (NASDAQ:TRNC) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

9.7% of News Corporation shares are owned by institutional investors. Comparatively, 35.8% of tronc shares are owned by institutional investors. 39.4% of News Corporation shares are owned by insiders. Comparatively, 41.2% of tronc shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares News Corporation and tronc’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
News Corporation $8.14 billion 1.02 -$738.00 million ($1.28) -11.09
tronc $1.61 billion 0.30 $6.53 million $0.72 20.35

tronc has higher revenue, but lower earnings than News Corporation. News Corporation is trading at a lower price-to-earnings ratio than tronc, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
News Corporation -9.07% 1.83% 1.40%
tronc 1.67% 63.87% 5.87%

Risk and Volatility

News Corporation has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, tronc has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.

Dividends

News Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. tronc does not pay a dividend. News Corporation pays out -15.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for News Corporation and tronc, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
News Corporation 0 0 1 0 3.00
tronc 0 0 1 0 3.00

Summary

tronc beats News Corporation on 7 of the 13 factors compared between the two stocks.

About News Corporation

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.

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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