Critical Analysis: Tribune Media (TRCO) vs. Its Rivals
Tribune Media (NYSE: TRCO) is one of 34 publicly-traded companies in the “Broadcasting” industry, but how does it contrast to its peers? We will compare Tribune Media to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, dividends and valuation.
Earnings & Valuation
This table compares Tribune Media and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Tribune Media||$1.95 billion||$14.24 million||-31.32|
|Tribune Media Competitors||$12.55 billion||$1.47 billion||177.62|
Tribune Media’s peers have higher revenue and earnings than Tribune Media. Tribune Media is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Tribune Media and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tribune Media Competitors||-20.22%||11.30%||2.60%|
Insider and Institutional Ownership
90.8% of Tribune Media shares are held by institutional investors. Comparatively, 52.3% of shares of all “Broadcasting” companies are held by institutional investors. 0.6% of Tribune Media shares are held by company insiders. Comparatively, 13.1% of shares of all “Broadcasting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Tribune Media pays out -75.2% of its earnings in the form of a dividend. As a group, “Broadcasting” companies pay a dividend yield of 1.7% and pay out 47.3% of their earnings in the form of a dividend. Tribune Media is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Volatility and Risk
Tribune Media has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Tribune Media’s peers have a beta of 1.45, suggesting that their average stock price is 45% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Tribune Media and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tribune Media Competitors||204||1051||2296||44||2.61|
Tribune Media presently has a consensus target price of $43.88, indicating a potential upside of 5.34%. As a group, “Broadcasting” companies have a potential upside of 13.24%. Given Tribune Media’s peers stronger consensus rating and higher probable upside, analysts clearly believe Tribune Media has less favorable growth aspects than its peers.
Tribune Media peers beat Tribune Media on 10 of the 15 factors compared.
About Tribune Media
Tribune Media Company, through its subsidiaries, operates as a media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV, a digital multicast networks; Tribune Studios, a development and production studio; Screener, an entertainment Website; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.
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