News (NASDAQ:NWSA – Get Free Report) and Gambling.com Group (NASDAQ:GRSD – Get Free Report) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Profitability
This table compares News and Gambling.com Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| News | 6.35% | 7.09% | 4.27% |
| Gambling.com Group | -22.36% | 13.87% | 5.33% |
Earnings and Valuation
This table compares News and Gambling.com Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| News | $9.03 billion | 1.81 | $573.00 million | $1.03 | 29.34 |
| Gambling.com Group | $165.45 million | 0.29 | -$32.93 million | ($1.04) | -1.31 |
News has higher revenue and earnings than Gambling.com Group. Gambling.com Group is trading at a lower price-to-earnings ratio than News, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
News has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Gambling.com Group has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for News and Gambling.com Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| News | 0 | 1 | 5 | 0 | 2.83 |
| Gambling.com Group | 1 | 3 | 4 | 1 | 2.56 |
News currently has a consensus target price of $38.50, suggesting a potential upside of 27.40%. Gambling.com Group has a consensus target price of $6.43, suggesting a potential upside of 372.69%. Given Gambling.com Group’s higher possible upside, analysts plainly believe Gambling.com Group is more favorable than News.
Insider and Institutional Ownership
67.0% of News shares are held by institutional investors. Comparatively, 72.3% of Gambling.com Group shares are held by institutional investors. 11.6% of News shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
News beats Gambling.com Group on 10 of the 15 factors compared between the two stocks.
About News
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children’s, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
About Gambling.com Group
Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide. It provides digital marketing services for the iGaming and social casino products. The company's focus is on online casino, online sports betting, and fantasy sports industry. It publishes various branded websites, including Gambling.com, Casinos.com, RotoWire.com, and Bookies.com. The company was incorporated in 2006 and is based in Saint Helier, Jersey.
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