Financial Analysis: A.H. Belo Corporation (AHC) and News Corporation (NWS)

A.H. Belo Corporation (NYSE: AHC) and News Corporation (NASDAQ:NWS) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Earnings & Valuation

This table compares A.H. Belo Corporation and News Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
A.H. Belo Corporation $259.98 million 0.41 -$19.31 million ($1.00) -4.90
News Corporation $8.14 billion 1.11 -$738.00 million ($1.13) -13.76

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

Profitability

This table compares A.H. Belo Corporation and News Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A.H. Belo Corporation -8.59% 1.70% 0.80%
News Corporation -7.96% 2.27% 1.74%

Dividends

A.H. Belo Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 6.5%. News Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. A.H. Belo Corporation pays out -32.0% of its earnings in the form of a dividend. News Corporation pays out -17.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. A.H. Belo Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations for A.H. Belo Corporation and News Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A.H. Belo Corporation 0 0 0 0 N/A
News Corporation 0 0 1 0 3.00

Insider & Institutional Ownership

57.0% of A.H. Belo Corporation shares are owned by institutional investors. Comparatively, 9.7% of News Corporation shares are owned by institutional investors. 12.6% of A.H. Belo Corporation shares are owned by insiders. Comparatively, 39.4% of News Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

A.H. Belo Corporation has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, News Corporation has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.

Summary

News Corporation beats A.H. Belo Corporation on 8 of the 14 factors compared between the two stocks.

About A.H. Belo Corporation

A. H. Belo Corporation is a local news and information publishing company. The Company is engaged in providing commercial printing, distribution and direct mail services, as well as media and digital marketing services. The Company operates through two segments: Publishing and Marketing, Event Marketing and Other Services (MEMO). The Company’s Publishing segment includes its print operations associated with its newspapers, publications and related Websites. The Company’s publishing segment includes the operations of The Dallas Morning News (www.dallasnews.com), a Texas newspaper, and the Denton Record-Chronicle (www.dentonrc.com), a daily newspaper operating in Denton, Texas. The Company’s MEMO segment consists of marketing, event marketing and other businesses. It offers digital marketing solutions through Your Speakeasy, LLC (Speakeasy) and DMV Digital Holdings Company, Inc., and provides event promotion and marketing services through DMN CrowdSource LLC (CrowdSource).

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.

Receive News & Ratings for A.H. Belo Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for A.H. Belo Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply