Critical Review: Liberty Media (FWONK) versus GANNETT CO INC. Common Stock (TGNA)
Liberty Media (NASDAQ: FWONK) and GANNETT CO INC. Common Stock (NYSE:TGNA) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
GANNETT CO INC. Common Stock pays an annual dividend of $0.28 per share and has a dividend yield of 2.6%. Liberty Media does not pay a dividend. GANNETT CO INC. Common Stock pays out 25.9% of its earnings in the form of a dividend.
This table compares Liberty Media and GANNETT CO INC. Common Stock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|GANNETT CO INC. Common Stock||23.56%||27.89%||4.80%|
This is a breakdown of current ratings and target prices for Liberty Media and GANNETT CO INC. Common Stock, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GANNETT CO INC. Common Stock||1||4||6||0||2.45|
Liberty Media currently has a consensus target price of $42.00, indicating a potential upside of 30.35%. GANNETT CO INC. Common Stock has a consensus target price of $15.09, indicating a potential upside of 42.50%. Given GANNETT CO INC. Common Stock’s higher possible upside, analysts plainly believe GANNETT CO INC. Common Stock is more favorable than Liberty Media.
Insider & Institutional Ownership
92.2% of Liberty Media shares are owned by institutional investors. Comparatively, 96.1% of GANNETT CO INC. Common Stock shares are owned by institutional investors. 0.4% of GANNETT CO INC. Common Stock shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Liberty Media and GANNETT CO INC. Common Stock’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Liberty Media||$1.78 billion||4.17||$255.00 million||$1.21||26.63|
|GANNETT CO INC. Common Stock||$1.90 billion||1.20||$273.74 million||$1.08||9.81|
GANNETT CO INC. Common Stock has higher revenue and earnings than Liberty Media. GANNETT CO INC. Common Stock is trading at a lower price-to-earnings ratio than Liberty Media, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Liberty Media has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, GANNETT CO INC. Common Stock has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.
GANNETT CO INC. Common Stock beats Liberty Media on 11 of the 16 factors compared between the two stocks.
About Liberty Media
Formula One Group, through its subsidiaries, engages in the media and entertainment businesses in North America. Formula One Group was formerly known as The Liberty Media Group. The company is based in Englewood, Colorado. Formula One Group is a former subsidiary of Liberty Media Corporation.
About GANNETT CO INC. Common Stock
TEGNA Inc., a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products. The company also sells commercial advertising spots of its television stations. In addition, it operates Premion, an over the top local advertising network; Hatch, a centralized 360-degree marketing services agency; and radio broadcast stations. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in McLean, Virginia.
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