USA Today (NYSE:TDAY – Get Free Report) and AdStar (OTCMKTS:ADST – Get Free Report) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for USA Today and AdStar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USA Today | 0 | 2 | 2 | 0 | 2.50 |
| AdStar | 0 | 0 | 0 | 0 | 0.00 |
USA Today currently has a consensus price target of $7.70, suggesting a potential upside of 6.06%. Given USA Today’s stronger consensus rating and higher probable upside, analysts plainly believe USA Today is more favorable than AdStar.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| USA Today | $2.30 billion | 0.46 | $1.75 million | ($0.11) | -66.00 |
| AdStar | N/A | N/A | N/A | N/A | N/A |
USA Today has higher revenue and earnings than AdStar.
Institutional and Insider Ownership
76.7% of USA Today shares are held by institutional investors. 4.2% of USA Today shares are held by company insiders. Comparatively, 22.6% of AdStar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares USA Today and AdStar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| USA Today | 0.08% | 5.68% | 0.54% |
| AdStar | N/A | N/A | N/A |
Summary
USA Today beats AdStar on 8 of the 9 factors compared between the two stocks.
About USA Today
Gannett Co Inc. invests in, owns, and operates local media assets in the United States. The company’s principal products include 125 daily newspapers with total paid circulation of approximately 1.4 million; 314 weekly newspapers with total paid circulation of approximately 315,000 and total free circulation of approximately 1.9 million; 124 shoppers with total circulation of approximately 3.0 million; and 538 locally-focused Websites, including Internet and mobile devices with approximately 224 million page views per month. Its principal products also comprise 2 yellow page directories with a total distribution of approximately 230,000 that cover a population of approximately 411,000 people; 68 business publications; and Propel digital marketing and business services. In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it provides print and online products that offer local market news and information on various topics comprising local news and politics, community and regional events, youth sports, opinion and editorial pages, local schools, obituaries, weddings, and police reports, as well as print and digital advertising products, as well as commercial printing and regional business-oriented publications services. The company reaches approximately 20 million people per week; and serves approximately 220,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York.
About AdStar
AdStar, Inc. engages in the provision of advertising technology services to publishers. It focuses on its application service provider. The company was founded by Leslie Bernhard and Eli Rousso in 1986 and is headquartered in Marina del Rey, CA.
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