Head to Head Review: Daily Journal (DJCO) versus New York Times (NYT)

Daily Journal (NASDAQ: DJCO) and New York Times (NYSE:NYT) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Dividends

New York Times pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Daily Journal does not pay a dividend. New York Times pays out 26.7% of its earnings in the form of a dividend.

Profitability

This table compares Daily Journal and New York Times’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Daily Journal -2.22% -0.63% -0.36%
New York Times 6.02% 13.46% 5.37%

Valuation and Earnings

This table compares Daily Journal and New York Times’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Daily Journal $41.38 million 7.99 -$910,000.00 ($0.66) -363.03
New York Times $1.56 billion 2.11 $29.06 million $0.60 33.67

New York Times has higher revenue and earnings than Daily Journal. Daily Journal is trading at a lower price-to-earnings ratio than New York Times, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

37.7% of Daily Journal shares are held by institutional investors. Comparatively, 67.9% of New York Times shares are held by institutional investors. 20.4% of Daily Journal shares are held by company insiders. Comparatively, 5.7% of New York Times shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Daily Journal has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, New York Times has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Daily Journal and New York Times, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Daily Journal 0 0 0 0 N/A
New York Times 1 2 0 0 1.67

New York Times has a consensus target price of $13.93, indicating a potential downside of 31.02%. Given New York Times’ higher probable upside, analysts plainly believe New York Times is more favorable than Daily Journal.

Summary

New York Times beats Daily Journal on 10 of the 14 factors compared between the two stocks.

Daily Journal Company Profile

Daily Journal Corporation publishes newspapers and Websites covering California and Arizona, and produces various specialized information services. The Company also serves as a newspaper representative specializing in public notice advertising. It operates through two segments: Traditional Business and Journal Technologies. The Traditional Business segment provides newspaper publishing and related services. The Journal Technologies segment supplies case management software systems and related products to courts, prosecutor and public defender offices, probation departments and other justice agencies, including administrative law organizations, city and county governments and bar associations. These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other justice partners and to extend electronic services to bar members and the public. Its subsidiary is Journal Technologies, Inc. (Journal Technologies).

New York Times Company Profile

The New York Times Company is a media company focused on creating, collecting and distributing news and information. The Company’s principal business consists of distributing content generated by its newsroom through its print, Web and mobile platforms. In addition, it distributes selected content on third-party platforms. The Company includes newspapers, print and digital products and investments. The Company’s businesses include newspapers, such as The New York Times (The Times); Websites, including NYTimes.com; mobile applications, including The Times’s news applications, as well as interest-specific applications, such as NYT Cooking, Crossword and others, and related businesses, such as The Times news services division, product review and recommendation Websites The Wirecutter and The Sweethome, digital archive distribution, NYT Live (its live events business) and other products and services under The Times brand.

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