E.W. Scripps (NASDAQ:SSP – Get Free Report) and Educational Development (NASDAQ:EDUC – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Risk & Volatility
E.W. Scripps has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Educational Development has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
Institutional & Insider Ownership
67.8% of E.W. Scripps shares are held by institutional investors. Comparatively, 19.6% of Educational Development shares are held by institutional investors. 5.2% of E.W. Scripps shares are held by insiders. Comparatively, 11.9% of Educational Development shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares E.W. Scripps and Educational Development”s 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 | 0.16 | -$100.88 million | ($13.18) | -0.27 |
| Educational Development | $22.91 million | 0.32 | $2.33 million | $0.19 | 4.53 |
Educational Development has lower revenue, but higher earnings than E.W. Scripps. E.W. Scripps is trading at a lower price-to-earnings ratio than Educational Development, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for E.W. Scripps and Educational Development, 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 |
| Educational Development | 1 | 0 | 0 | 0 | 1.00 |
E.W. Scripps presently has a consensus target price of $5.90, suggesting a potential upside of 63.43%. Given E.W. Scripps’ stronger consensus rating and higher possible upside, equities analysts plainly believe E.W. Scripps is more favorable than Educational Development.
Profitability
This table compares E.W. Scripps and Educational Development’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| E.W. Scripps | -54.15% | 12.25% | 0.75% |
| Educational Development | 8.60% | -18.72% | -14.64% |
About E.W. Scripps
The E.W. Scripps Company is a U.S. media company focused on local television broadcasting and national television networks. Its local stations provide news, weather, sports and other programming to communities across the country. Scripps also operates national networks, including ION, Bounce, Grit, Laff, Court TV and Scripps News. These services offer a range of programming, from entertainment and sports to news and courtroom coverage, through broadcast and other distribution platforms. Founded in 1878 by newspaper publisher Edward Willis Scripps, the company developed from a newspaper business into a broadcaster and expanded its national television operations over time.
About Educational Development
Educational Development Corporation (NASDAQ: EDUC) is a publisher and distributor of educational children’s books and related products. Through its PaperPie business, the company sells books primarily through direct-to-consumer channels, including independent brand partners and online platforms. The company’s product portfolio includes children’s fiction and nonfiction, activity books, reference materials, early-learning resources, and other educational products. It has also distributed titles from Usborne Publishing, a United Kingdom-based children’s publisher, to customers in the United States and Canada.
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