Starz Acquisition (NASDAQ: STRZA) and Tribune Media (NYSE:TRCO) are both mid-cap cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Earnings & Valuation

This table compares Starz Acquisition and Tribune Media’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Starz Acquisition N/A N/A N/A $1.80 19.73
Tribune Media $1.95 billion 1.90 $14.24 million ($1.33) -31.95

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Starz Acquisition and Tribune Media, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starz Acquisition 0 0 0 0 N/A
Tribune Media 1 4 1 0 2.00

Tribune Media has a consensus target price of $43.88, indicating a potential upside of 3.24%. Given Tribune Media’s higher possible upside, analysts clearly believe Tribune Media is more favorable than Starz Acquisition.

Profitability

This table compares Starz Acquisition and Tribune Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Starz Acquisition -68.21% -14.75% -6.41%
Tribune Media -6.12% 4.11% 1.50%

Volatility & Risk

Starz Acquisition has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, Tribune Media has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Insider & Institutional Ownership

80.2% of Starz Acquisition shares are owned by institutional investors. Comparatively, 90.8% of Tribune Media shares are owned by institutional investors. 8.5% of Starz Acquisition shares are owned by company insiders. Comparatively, 0.6% of Tribune Media shares are owned 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.

Dividends

Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Starz Acquisition does not pay a dividend. Tribune Media pays out -75.2% of its earnings in the form of a dividend.

Summary

Tribune Media beats Starz Acquisition on 10 of the 13 factors compared between the two stocks.

About Starz Acquisition

Starz Acquisition LLC, formerly Starz, is an integrated media and entertainment company. The Company provides premium subscription video programming in the United States to cable operators, satellite television providers, telecommunications companies and online video providers. The Company’s segments include Starz Networks and Starz Distribution. The Starz Networks segment provides premium subscription video programming to the United States multichannel video programming distributors (MVPDs), including cable operators (such as Comcast and Time Warner Cable), satellite television providers (such as DIRECTV and DISH Network) and telecommunications companies (such as AT&T and Verizon). The Starz Distribution segment includes the operations of its Anchor Bay Entertainment, Starz Digital and Starz Worldwide Distribution businesses. It also develops, produces and acquires entertainment content and distributes this content to consumers in the United States and throughout the world.

About Tribune Media

Tribune Media Company, through its subsidiaries, operates as a media and entertainment company in the United States. It offers news, entertainment, and sports programming through Tribune Broadcasting local television stations, including FOX television affiliates, CW Network, LLC television affiliates, CBS television affiliates, ABC television affiliates, NBC television affiliates, and independent television stations; and television series and movies on WGN America, a national general entertainment cable network. The company also operates Antenna TV and THIS TV, a digital multicast networks; Tribune Studios, a development and production studio; Screener, an entertainment Website; and WGN 720 AM, a radio station in Chicago. It owns and operates 42 local television stations. The company was formerly known as Tribune Company and changed its name to Tribune Media Company in July 2014. Tribune Media Company was founded in 1847 and is based in Chicago, Illinois.

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