Time (NYSE: TIME) and McClatchy Company (The) (NYSE:MNI) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.
Risk and Volatility
Time has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, McClatchy Company (The) has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.
This is a summary of current ratings for Time and McClatchy Company (The), as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|McClatchy Company (The)||0||1||0||0||2.00|
Time presently has a consensus target price of $15.25, indicating a potential upside of 23.48%. Given Time’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Time is more favorable than McClatchy Company (The).
This table compares Time and McClatchy Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|McClatchy Company (The)||-14.81%||-13.89%||-0.55%|
Time pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. McClatchy Company (The) does not pay a dividend. Time pays out -12.3% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Time and McClatchy Company (The)’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Time||$2.96 billion||0.42||$384.00 million||($1.30)||-9.50|
|McClatchy Company (The)||$943.21 million||0.03||$137.64 million||($18.41)||-0.34|
Time has higher revenue and earnings than McClatchy Company (The). Time is trading at a lower price-to-earnings ratio than McClatchy Company (The), indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.9% of Time shares are owned by institutional investors. Comparatively, 35.0% of McClatchy Company (The) shares are owned by institutional investors. 1.9% of Time shares are owned by insiders. Comparatively, 34.9% of McClatchy Company (The) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Time beats McClatchy Company (The) on 13 of the 15 factors compared between the two stocks.
Time Company Profile
Time Inc. is a media and content company. The Company offers a portfolio of news and lifestyle brands across a range of interest areas. As of December 31, 2016, the Company’s brands included People, Time, Fortune, Sports Illustrated, InStyle, Real Simple, Southern Living, Entertainment Weekly, Food & Wine, Travel + Leisure and Essence, as well as approximately 50 titles in the United Kingdom. The Company also offers its brands through other media and platforms including licensing, video and television, live events and paid products and services. The Company also offers events, such as the Time 100, Fortune Most Powerful Women, People’s Sexiest Man Alive, Sports Illustrated’s Sportsperson of the Year, the Essence Festival and the Food & Wine Classic in Aspen. It is a subscription marketer in the United States media industry. It also offers its advertisers a range of analytics and research services, including consumer insights, audience measurement and accountability reporting.
McClatchy Company (The) Company Profile
The McClatchy Company is a news and information publisher of various publications, such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, and the (Fort Worth) Star-Telegram. The Company’s segments include Western Segment and Eastern Segment. Its Western Segment consists of its newspaper operations in California, the Northwest and the Midwest. The Company’s Eastern Segment consists primarily of newspaper operations in the Southeast and Florida. The Company operates 30 media companies in 29 United States markets in 14 states, providing each of these communities with news and advertising services in a range of digital and print formats. The Company’s operations include approximately 30 local media businesses United States that consist of daily newspapers, Websites and mobile applications, publications, direct marketing, direct mail services and community newspapers.
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