McClatchy Company (The) (NYSE: MNI) and Gannett Co., Inc.¿ (NYSE:GCI) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitabiliy, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
39.9% of McClatchy Company (The) shares are owned by institutional investors. Comparatively, 83.6% of Gannett Co., Inc.¿ shares are owned by institutional investors. 34.9% of McClatchy Company (The) shares are owned by insiders. Comparatively, 0.7% of Gannett Co., Inc.¿ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for McClatchy Company (The) and Gannett Co., Inc.¿, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McClatchy Company (The)||0||0||1||0||3.00|
|Gannett Co., Inc.¿||0||1||1||0||2.50|
Gannett Co., Inc.¿ has a consensus price target of $15.00, indicating a potential upside of 70.65%. Given Gannett Co., Inc.¿’s higher possible upside, analysts clearly believe Gannett Co., Inc.¿ is more favorable than McClatchy Company (The).
Gannett Co., Inc.¿ pays an annual dividend of $0.64 per share and has a dividend yield of 7.3%. McClatchy Company (The) does not pay a dividend. Gannett Co., Inc.¿ pays out 800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares McClatchy Company (The) and Gannett Co., Inc.¿’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|McClatchy Company (The)||-12.19%||-16.20%||-1.02%|
|Gannett Co., Inc.¿||0.33%||12.11%||4.29%|
Risk & Volatility
McClatchy Company (The) has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Gannett Co., Inc.¿ has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.
Valuation and Earnings
This table compares McClatchy Company (The) and Gannett Co., Inc.¿’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|McClatchy Company (The)||$960.33 million||0.05||$134.46 million||($15.39)||-0.58|
|Gannett Co., Inc.¿||$3.16 billion||0.32||$317.33 million||$0.08||109.88|
Gannett Co., Inc.¿ has higher revenue and earnings than McClatchy Company (The). McClatchy Company (The) is trading at a lower price-to-earnings ratio than Gannett Co., Inc.¿, indicating that it is currently the more affordable of the two stocks.
Gannett Co., Inc.¿ beats McClatchy Company (The) on 10 of the 14 factors compared between the two stocks.
McClatchy Company (The) Company Profile
The McClatchy Company is a news and information publisher of various publications, such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, and the (Fort Worth) Star-Telegram. The Company’s segments include Western Segment and Eastern Segment. Its Western Segment consists of its newspaper operations in California, the Northwest and the Midwest. The Company’s Eastern Segment consists primarily of newspaper operations in the Southeast and Florida. The Company operates 30 media companies in 29 United States markets in 14 states, providing each of these communities with news and advertising services in a range of digital and print formats. The Company’s operations include approximately 30 local media businesses United States that consist of daily newspapers, Websites and mobile applications, publications, direct marketing, direct mail services and community newspapers.
Gannett Co., Inc.¿ Company Profile
Gannett Co., Inc. is a media company. The Company operates as a newspaper publisher in the United States. As of December 25, 2016, it owned ReachLocal, Inc. (ReachLocal), a digital marketing solutions company; the USA TODAY NETWORK (made up of USA TODAY including digital sites and affiliates (USAT) and 109 local media organizations in 34 states in the United States and Guam), and Newsquest Media Group Ltd. (Newsquest), the Company’s subsidiary operating in the United Kingdom. The Company’s segments include Publishing, ReachLocal, and a Corporate and Other category. The publishing segment comprises the USA TODAY NETWORK and Newsquest. Its publishing operations also include commercial printing and distribution, marketing and data services. It also reaches small and medium sized businesses with digital marketing solutions principally through ReachLocal. ReachLocal is focused on local businesses and on providing a total digital marketing solution.
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