Head-To-Head Contrast: Gannett (GCI) vs. Rediff.com India (REDFY)

Gannett (NYSE:GCI) and Rediff.com India (OTCMKTS:REDFY) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Insider and Institutional Ownership

97.9% of Gannett shares are owned by institutional investors. 1.1% of Gannett shares are owned by company insiders. Comparatively, 70.7% of Rediff.com India shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Gannett has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Rediff.com India has a beta of 3.02, meaning that its stock price is 202% more volatile than the S&P 500.

Valuation and Earnings

This table compares Gannett and Rediff.com India’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gannett $3.15 billion 0.37 $6.88 million $1.03 9.91
Rediff.com India N/A N/A N/A N/A N/A

Gannett has higher revenue and earnings than Rediff.com India.

Analyst Ratings

This is a summary of recent recommendations for Gannett and Rediff.com India, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gannett 1 0 1 0 2.00
Rediff.com India 0 0 0 0 N/A

Gannett currently has a consensus target price of $12.50, indicating a potential upside of 22.43%. Given Gannett’s higher possible upside, equities research analysts clearly believe Gannett is more favorable than Rediff.com India.

Profitability

This table compares Gannett and Rediff.com India’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gannett 0.52% 12.75% 5.37%
Rediff.com India N/A N/A N/A

Dividends

Gannett pays an annual dividend of $0.64 per share and has a dividend yield of 6.3%. Rediff.com India does not pay a dividend. Gannett pays out 62.1% of its earnings in the form of a dividend. Gannett has raised its dividend for 2 consecutive years.

Summary

Gannett beats Rediff.com India on 9 of the 12 factors compared between the two stocks.

Gannett Company Profile

Gannett Co., Inc. operates as a media and marketing solutions company. The company operates through Publishing and ReachLocal segments. The company offers print and digital daily and non-daily publications under the USA TODAY NETWORK brand name in the United States; and Newsquest, which has print and online publications portfolio of approximately 170 news brands and 80 magazines in the United Kingdom. Gannett Co., Inc. operations comprise 130 daily publications and digital platforms the United States and the United Kingdom; and 435 non-daily publications in the United States and 159 such titles in the United Kingdom. It also provides commercial printing, distribution, marketing, and data services; and owns s1 and Exchange & Mart businesses, and a specialist magazine business. In addition, the company offers digital marketing solutions comprising ReachSearch, ReachDisplay, ReachSocial Ads, and ReachRetargeting digital advertising solutions; ReachSite+ReachEdge, ReachSEO, ReachCast, ReachListings, and TotalLiveChat Web presence solutions; and ReachEdge, a marketing automation platform, as well as Kickserv, a cloud-based business management software for service businesses. The company offers its suite of products and solutions to local businesses through its proprietary technology platform, its sales force, and third-party agencies and resellers. It also operates in Canada, Australia, New Zealand, Japan, Germany, Austria, Brazil, and Mexico. The company was formerly known as Gannett SpinCo, Inc. and changed its name to Gannett Co., Inc. in May 2015. Gannett Co., Inc. was incorporated in 2014 and is headquartered in McLean, Virginia.

Rediff.com India Company Profile

Rediff.com India Limited provides online Internet based services in India and to the global Indian community. The company operates in two segments, India Online Business and US Publishing Business. Its Websites consist of channels relevant to Indian interests, such as cricket, astrology, matchmaker, and movies; content on various matters, including news and finance; search facilities; a range of community features comprising e-mail, chat, messenger, e-commerce, and broadband wireless content; and mobile value-added services, such as ring tones, picture messages, logos, wallpapers, and other related products to mobile phone users. The company also enables its customers to insert localized advertisements on national television channels by providing a platform to create an advertisement and prepare a media plan; and publishes two weekly newspapers in North America, including India Abroad and India in New York. In addition, it offers Moneywiz that provides stock market quotes, company information, and a personal portfolio tracker, as well as business news, feature articles, expert columns, and interviews; Rediff Blogs, which enables users to set up their own blogs and publish their thoughts and ideas directly and instantly on the Web; Rediff iShare, a video sharing platform; Rediff MyPage, a free online social networking product; and Get Ahead, an editorial content channel that supports a forum for questions and answers. Further, the company operates Rediff Shopping, an online marketplace which allows users to purchase products and services listed on its platform by various merchants; and offers e-mail solutions, such as Rediffmail, its flagship e-mail service, and Rediffmail PRO for small and medium sized enterprise segment. Rediff.com India Limited was founded in 1996 and is headquartered in Mumbai, India.

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