News (NASDAQ:NWS – Get Free Report) and Magnite (NASDAQ:MGNI – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Profitability
This table compares News and Magnite’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| News | 6.35% | 7.09% | 4.27% |
| Magnite | 22.49% | 9.33% | 2.77% |
Earnings & Valuation
This table compares News and Magnite”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| News | $9.03 billion | 1.97 | $573.00 million | $1.03 | 31.92 |
| Magnite | $713.95 million | 4.70 | $144.61 million | $1.09 | 21.48 |
News has higher revenue and earnings than Magnite. Magnite is trading at a lower price-to-earnings ratio than News, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
News has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Magnite has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for News and Magnite, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| News | 0 | 1 | 1 | 0 | 2.50 |
| Magnite | 0 | 2 | 10 | 0 | 2.83 |
Magnite has a consensus price target of $29.36, suggesting a potential upside of 25.41%. Given Magnite’s stronger consensus rating and higher possible upside, analysts clearly believe Magnite is more favorable than News.
Institutional & Insider Ownership
14.6% of News shares are held by institutional investors. Comparatively, 73.4% of Magnite shares are held by institutional investors. 11.1% of News shares are held by insiders. Comparatively, 3.2% of Magnite shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Magnite beats News on 9 of the 14 factors compared between the two stocks.
About News
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children’s, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
About Magnite
Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.
Receive News & Ratings for News Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for News and related companies with MarketBeat.com's FREE daily email newsletter.
