TiVo (NASDAQ: TIVO) and Tribune Media (NYSE:TRCO) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
90.3% of TiVo shares are held by institutional investors. Comparatively, 90.8% of Tribune Media shares are held by institutional investors. 3.6% of TiVo shares are held by company insiders. Comparatively, 0.6% of Tribune Media shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares TiVo and Tribune Media’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TiVo||$649.09 million||2.64||$32.66 million||($0.39)||-36.03|
|Tribune Media||$1.95 billion||1.90||$14.24 million||($1.33)||-31.95|
TiVo has higher earnings, but lower revenue than Tribune Media. TiVo is trading at a lower price-to-earnings ratio than Tribune Media, indicating that it is currently the more affordable of the two stocks.
TiVo pays an annual dividend of $0.72 per share and has a dividend yield of 5.1%. Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. TiVo pays out -184.6% of its earnings in the form of a dividend. Tribune Media pays out -75.2% 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. TiVo is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
TiVo has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, Tribune Media has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for TiVo and Tribune Media, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TiVo currently has a consensus target price of $22.75, indicating a potential upside of 61.92%. Tribune Media has a consensus target price of $43.88, indicating a potential upside of 3.24%. Given TiVo’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TiVo is more favorable than Tribune Media.
This table compares TiVo and Tribune Media’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
TiVo beats Tribune Media on 12 of the 16 factors compared between the two stocks.
TiVo Company Profile
TiVo Corporation is engaged in offering media and entertainment products. The Company operates through two segments: Intellectual Property Licensing and Product. The Company’s Product segment includes a suite of component technologies that can be integrated into media service provider internally developed platforms or deployed as an integrated TiVo solution. The Company provides a range of intellectual property, cloud-based services and set-top box solutions that enable people to use online video, television, movies and music entertainment, including content discovery through device embedded and cloud-based interactive program guides (IPGs), digital video recorders (DVRs), natural language voice and text search, cloud-based recommendations services and its entertainment metadata (descriptive information, promotional images or other content that describes or relates to television shows, videos, movies, sports, music, books, games or other entertainment content).
Tribune Media Company Profile
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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