National CineMedia (NASDAQ:NCMI – Get Free Report) and John Wiley & Sons (NYSE:WLYB – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Dividends
National CineMedia pays an annual dividend of $0.12 per share and has a dividend yield of 5.4%. John Wiley & Sons pays an annual dividend of $1.43 per share and has a dividend yield of 2.9%. National CineMedia pays out -133.3% of its earnings in the form of a dividend. John Wiley & Sons pays out 37.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John Wiley & Sons has increased its dividend for 26 consecutive years. National CineMedia is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of current ratings for National CineMedia and John Wiley & Sons, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National CineMedia | 0 | 3 | 3 | 0 | 2.50 |
| John Wiley & Sons | 0 | 1 | 0 | 0 | 2.00 |
Volatility & Risk
National CineMedia has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, John Wiley & Sons has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.
Valuation and Earnings
This table compares National CineMedia and John Wiley & Sons”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National CineMedia | $243.20 million | 0.86 | -$10.60 million | ($0.09) | -24.83 |
| John Wiley & Sons | $1.68 billion | 1.47 | $221.62 million | $3.78 | 12.83 |
John Wiley & Sons has higher revenue and earnings than National CineMedia. National CineMedia is trading at a lower price-to-earnings ratio than John Wiley & Sons, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares National CineMedia and John Wiley & Sons’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National CineMedia | -3.05% | -1.31% | -0.99% |
| John Wiley & Sons | 11.90% | 27.99% | 8.16% |
Institutional and Insider Ownership
69.5% of National CineMedia shares are held by institutional investors. Comparatively, 0.5% of John Wiley & Sons shares are held by institutional investors. 1.7% of National CineMedia shares are held by insiders. Comparatively, 29.7% of John Wiley & Sons shares are held by 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.
Summary
John Wiley & Sons beats National CineMedia on 10 of the 17 factors compared between the two stocks.
About National CineMedia
National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.
About John Wiley & Sons
John Wiley & Sons, Inc. engages in the provision of research and learning materials. It operates through the following segments: Research, Learning, and Held for Sale or Sold. The Research segment consists of research publishing and research solutions. The Learning segment includes academic and professional reporting lines and consists of publishing and related knowledge solutions. The Held for Sale or Sold segment offers businesses held-for-sale including Wiley Edge and CrossKnowledge, University Services and Tuition Manager, and Test Prep and Advancement Courses. The company was founded by Charles Wiley in 1807 and is headquartered in Hoboken, NJ.
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