News (NASDAQ: NWS) and News (NASDAQ:NWSA) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

9.5% of News shares are held by institutional investors. Comparatively, 61.0% of News shares are held by institutional investors. 39.4% of News shares are held by company insiders. Comparatively, 13.9% of News shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares News and News’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
News -7.96% 2.27% 1.74%
News -7.96% 2.27% 1.74%

Dividends

News pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. News pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. News pays out -17.7% of its earnings in the form of a dividend. News pays out -17.7% 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for News and News, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
News 0 0 1 0 3.00
News 0 2 2 0 2.50

News has a consensus target price of $15.50, indicating a potential downside of 6.34%. Given News’ higher probable upside, analysts clearly believe News is more favorable than News.

Volatility and Risk

News has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500. Comparatively, News has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500.

Valuation and Earnings

This table compares News and News’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
News $8.14 billion 1.20 -$738.00 million ($1.13) -14.87
News $8.14 billion 1.18 -$738.00 million ($1.13) -14.65

News is trading at a lower price-to-earnings ratio than News, indicating that it is currently the more affordable of the two stocks.

Summary

News beats News on 5 of the 9 factors compared between the two stocks.

About News

News Corporation is a diversified media and information services company. The Company operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other. The Company’s business consists of range of media, including news and information services, sports programming in Australia, digital real estate services, book publishing, and pay-television (TV) distribution in Australia, that are distributed under the brands, including The Wall Street Journal, Dow Jones, Herald Sun, The Sun, The Times, HarperCollins Publishers, FOX SPORTS Australia and realestate.com.au. The Company is a developing provider of digital education content, assessment and delivery services. The Company’s business component includes News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, Amplify and Foxtel. In July 2014, it completed the acquisition of Harlequin Enterprises from Torstar Corp.

About News

News Corporation is a diversified media and information services company. The Company operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other. The Company’s business consists of range of media, including news and information services, sports programming in Australia, digital real estate services, book publishing, and pay-television (TV) distribution in Australia, that are distributed under the brands, including The Wall Street Journal, Dow Jones, Herald Sun, The Sun, The Times, HarperCollins Publishers, FOX SPORTS Australia and realestate.com.au. The Company is a developing provider of digital education content, assessment and delivery services. The Company’s business component includes News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, Amplify and Foxtel. In July 2014, it completed the acquisition of Harlequin Enterprises from Torstar Corp.

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