News Corporation (NASDAQ: NWSA) and Media General (NYSE:MEG) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Dividends

News Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. Media General does not pay a dividend. News Corporation pays out -15.6% of its earnings in the form of a dividend.

Profitability

This table compares News Corporation and Media General’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
News Corporation -9.07% 1.83% 1.40%
Media General -4.25% 6.92% 2.28%

Analyst Recommendations

This is a summary of recent recommendations and price targets for News Corporation and Media General, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
News Corporation 1 2 2 0 2.20
Media General 0 0 0 0 N/A

News Corporation currently has a consensus target price of $15.20, suggesting a potential upside of 13.26%. Given News Corporation’s higher possible upside, equities analysts plainly believe News Corporation is more favorable than Media General.

Risk & Volatility

News Corporation has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, Media General has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Insider & Institutional Ownership

93.5% of News Corporation shares are owned by institutional investors. Comparatively, 90.8% of Media General shares are owned by institutional investors. 13.9% of News Corporation shares are owned by insiders. Comparatively, 16.5% of Media General shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares News Corporation and Media General’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
News Corporation $8.14 billion 0.63 $738.00 million ($1.28) -10.48
Media General N/A N/A N/A ($0.47) -39.38

News Corporation has higher revenue and earnings than Media General. Media General is trading at a lower price-to-earnings ratio than News Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

News Corporation beats Media General on 7 of the 12 factors compared between the two stocks.

About News Corporation

News Corporation is a diversified media and information services company. The Company operates in five segments: News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, and Other. The Company’s business consists of range of media, including news and information services, sports programming in Australia, digital real estate services, book publishing, and pay-television (TV) distribution in Australia, that are distributed under the brands, including The Wall Street Journal, Dow Jones, Herald Sun, The Sun, The Times, HarperCollins Publishers, FOX SPORTS Australia and realestate.com.au. The Company is a developing provider of digital education content, assessment and delivery services. The Company’s business component includes News and Information Services, Cable Network Programming, Digital Real Estate Services, Book Publishing, Amplify and Foxtel. In July 2014, it completed the acquisition of Harlequin Enterprises from Torstar Corp.

About Media General

Media General, Inc. is a television broadcasting and digital media company. The Company provides news, information and entertainment in markets across the United States. The Company operates or services 71 network-affiliated broadcast television stations in 48 markets along with the digital media business. The Company’s network affiliations include twelve CBS stations, nine NBC stations, seven ABC stations, one FOX station, one CW station and one MyNetworkTV station. The Company offers consumers and advertisers with entertainment and information, content and distribution on every screen. Its portfolio of broadcast, digital and mobile products informs and engages 23% of United States Television (TV) households and 43% of the United States Internet audience. The Company has the diverse digital media business with a portfolio that includes LIN Digital, LIN Mobile, HYFN, Dedicated Media, Federated Media and BiteSizeTV.

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