Daily Journal (DJCO) & News (NWSA) Critical Contrast

Daily Journal (NASDAQ: DJCO) and News (NASDAQ:NWSA) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Volatility and Risk

Daily Journal has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, News has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500.

Dividends

News pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Daily Journal does not pay a dividend. News pays out -17.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for Daily Journal and News, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Daily Journal 0 0 0 0 N/A
News 0 2 2 0 2.50

News has a consensus price target of $15.50, indicating a potential downside of 6.57%. Given News’ higher probable upside, analysts clearly believe News is more favorable than Daily Journal.

Valuation and Earnings

This table compares Daily Journal and News’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Daily Journal $41.38 million 8.01 -$910,000.00 ($0.66) -364.09
News $8.14 billion 1.19 -$738.00 million ($1.13) -14.68

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

Profitability

This table compares Daily Journal and News’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Daily Journal -2.22% -0.63% -0.36%
News -7.96% 2.27% 1.74%

Institutional and Insider Ownership

37.7% of Daily Journal shares are held by institutional investors. Comparatively, 60.9% of News shares are held by institutional investors. 20.4% of Daily Journal shares are held by company insiders. Comparatively, 13.9% of News shares are held 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.

Summary

News beats Daily Journal on 10 of the 15 factors compared between the two stocks.

Daily Journal Company Profile

Daily Journal Corporation publishes newspapers and Websites covering California and Arizona, and produces various specialized information services. The Company also serves as a newspaper representative specializing in public notice advertising. It operates through two segments: Traditional Business and Journal Technologies. The Traditional Business segment provides newspaper publishing and related services. The Journal Technologies segment supplies case management software systems and related products to courts, prosecutor and public defender offices, probation departments and other justice agencies, including administrative law organizations, city and county governments and bar associations. These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other justice partners and to extend electronic services to bar members and the public. Its subsidiary is Journal Technologies, Inc. (Journal Technologies).

News 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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