Daily Journal (NASDAQ: DJCO) and A. H. Belo (NYSE:AHC) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Profitability

This table compares Daily Journal and A. H. Belo’s 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%
A. H. Belo -8.59% 1.70% 0.80%

Institutional and Insider Ownership

37.7% of Daily Journal shares are owned by institutional investors. Comparatively, 57.2% of A. H. Belo shares are owned by institutional investors. 19.5% of Daily Journal shares are owned by company insiders. Comparatively, 12.6% of A. H. Belo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Daily Journal and A. H. Belo’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Daily Journal $41.38 million 8.00 -$910,000.00 ($0.66) -363.64
A. H. Belo $259.98 million 0.41 -$19.31 million ($1.00) -4.85

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

Dividends

A. H. Belo pays an annual dividend of $0.32 per share and has a dividend yield of 6.6%. Daily Journal does not pay a dividend. A. H. Belo pays out -32.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings for Daily Journal and A. H. Belo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Daily Journal 0 0 0 0 N/A
A. H. Belo 0 0 0 0 N/A

Risk and Volatility

Daily Journal has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, A. H. Belo has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Summary

A. H. Belo beats Daily Journal on 7 of the 13 factors compared between the two stocks.

About Daily Journal

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).

About A. H. Belo

A. H. Belo Corporation is a local news and information publishing company. The Company is engaged in providing commercial printing, distribution and direct mail services, as well as media and digital marketing services. The Company operates through two segments: Publishing and Marketing, Event Marketing and Other Services (MEMO). The Company’s Publishing segment includes its print operations associated with its newspapers, publications and related Websites. The Company’s publishing segment includes the operations of The Dallas Morning News (www.dallasnews.com), a Texas newspaper, and the Denton Record-Chronicle (www.dentonrc.com), a daily newspaper operating in Denton, Texas. The Company’s MEMO segment consists of marketing, event marketing and other businesses. It offers digital marketing solutions through Your Speakeasy, LLC (Speakeasy) and DMV Digital Holdings Company, Inc., and provides event promotion and marketing services through DMN CrowdSource LLC (CrowdSource).

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