Comparing E.W. Scripps (NASDAQ:SSP) & Scholastic (NASDAQ:SCHL)

E.W. Scripps (NASDAQ:SSP) and Scholastic (NASDAQ:SCHL) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Earnings and Valuation

This table compares E.W. Scripps and Scholastic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E.W. Scripps	$2.15 billion	0.12	-$100.88 million	($13.94)	-0.20
Scholastic	$1.58 billion	0.46	$56.70 million	$1.40	27.61

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

Volatility and Risk

E.W. Scripps has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Scholastic has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Institutional & Insider Ownership

67.8% of E.W. Scripps shares are owned by institutional investors. Comparatively, 82.6% of Scholastic shares are owned by institutional investors. 5.2% of E.W. Scripps shares are owned by company insiders. Comparatively, 12.8% of Scholastic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for E.W. Scripps and Scholastic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E.W. Scripps	1	3	1	0	2.00
Scholastic	0	3	0	0	2.00

E.W. Scripps currently has a consensus target price of $5.90, suggesting a potential upside of 108.48%. Scholastic has a consensus target price of $35.00, suggesting a potential downside of 9.44%. Given E.W. Scripps’ higher probable upside, equities analysts plainly believe E.W. Scripps is more favorable than Scholastic.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
E.W. Scripps	-58.02%	-4.58%	-0.53%
Scholastic	3.60%	5.00%	2.22%

Summary

Scholastic beats E.W. Scripps on 10 of the 13 factors compared between the two stocks.

About E.W. Scripps

The E.W. Scripps Company, together with its subsidiaries, operates as a media enterprise through a portfolio of local television stations, national news, and entertainment networks in the United States. It operates through Local Media, Scripps Networks, and Other segments. The Local Media segment operates broadcast television stations, which produce news, information, sports, and entertainment content, as well as its related digital operations; runs network, syndicated, and original programming, and local sporting events; and provides core and political advertising services. The Scripps Networks segment offers national television networks through free over-the-air broadcast, cable/satellite, connected TV, and digital distribution. This segment also provides Scripp News, a national news network, which provides politics, entertainment, science, and technology news; Court TV, which showcases live trials; entertainment brands, such as Bounce, Defy TV, Grit, ION Mystery, and Laff; and ION, a national network of broadcast stations and broadcast television spectrum, which distributes programming through Federal Communications Commission-licensed television stations, as well as affiliated TV stations through over-the-air broadcast and pay TV platforms. In addition, it provides content and services through digital platforms, including the Internet, smartphones, and tablets; Nuvyyo, which offers consumers DVR product solutions to watch and record free over-the-air HDTV on connected devices; and Scripps National Spelling Bee, which shows educational programs. The company serves audiences and businesses through cable and satellite service providers. The E.W. Scripps Company was founded in 1878 and is headquartered in Cincinnati, Ohio.

About Scholastic

Scholastic Corporation publishes and distributes children’s books worldwide. It operates in three segments: Children’s Book Publishing and Distribution, Education Solutions, and International. The Children’s Book Publishing and Distribution segment engages in publication and distribution of children’s print, digital, and audio books, as well as media and interactive products through its school reading events and trade channel; and operation of school-based book clubs and book fairs in the United States. Its original publications include The Harry Potter, The Hunger Games, The Bad Guys, The Baby-Sitters Club, The Magic School Bus, Captain Underpants, Dog Man, Wings of Fire, Cat Kid Comic Club, and Clifford The Big Red Dog, as well as I Survived, Goosebumps; licensed properties comprising the Peppa Pig and Pokemon; and publishes and creates Klutz and Make Believe Ideas titles, such as Mini Shake Shop, Pokemon Stained Glass, LEGO Miniature Photography, and the Never Touch series. The Education Solutions segment publishes and distributes classroom magazines under the Scholastic News, Scholastic Scope, Storyworks, Let’s Find Out, and Junior Scholastic names; supplemental and classroom materials and programs, and related support services; and print and on-line reference, and non-fiction products, as well as consulting services. The International segment publishes and distributes English, Hindi, and French language children’s books; and operates school-based marketing channels, as well as supply original and licensed children’s books, and supplemental educational materials including professional books for teachers. It distributes its products and services directly to schools and libraries through retail stores and the Internet. The company was founded in 1920 and is headquartered in New York, New York.