Analyzing Tegna (NYSE:TGNA) & LIN Media (TVL)

Tegna (NYSE: TGNA) and LIN Media (NYSE:TVL) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Tegna and LIN Media, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tegna 1 4 5 0 2.40
LIN Media 0 0 0 0 N/A

Tegna presently has a consensus target price of $18.50, indicating a potential upside of 22.52%.

Earnings & Valuation

This table compares Tegna and LIN Media’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tegna $3.34 billion 0.97 $436.69 million $1.55 9.74
LIN Media N/A N/A N/A $2.87 N/A

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

Profitability

This table compares Tegna and LIN Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tegna 11.10% 20.50% 4.93%
LIN Media N/A N/A N/A

Dividends

Tegna pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. LIN Media does not pay a dividend. Tegna pays out 18.1% of its earnings in the form of a dividend. Tegna has increased its dividend for 2 consecutive years.

Institutional and Insider Ownership

99.7% of Tegna shares are held by institutional investors. 0.8% of Tegna shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Tegna beats LIN Media on 9 of the 11 factors compared between the two stocks.

About Tegna

Tegna Inc. has a portfolio of media and digital businesses that provide content. The Company’s segments include TEGNA Media (Media) and TEGNA Digital (Digital). As of December 31, 2016, its media business included 46 television stations operating in 38 markets and offered television programming and digital content. Its Media segment includes core advertising, including local and national non-political advertising; political advertising during elections; retransmission that represents satellite and cable networks, and telecommunications companies to carry its television signals; digital that includes digital marketing services and advertising on the stations’ Websites, tablet and mobile products, and other services. Its Digital business segment includes G/O Digital and Cofactor.

About LIN Media

LIN Media LLC (LIN Media) is a local multimedia company. The Company operates or services 43 television stations and seven digital channels in 23 of the United States markets, and a portfolio of Websites, applications and mobile products. Its television stations deliver local news, community service, and sports and entertainment programming to viewers, reaching 10.5% of homes owning televisions in the United States. In April 2013, it acquired a majority ownership position in HYFN. On July 30, 2013, LIN Media announced that it had completed its merger with LIN TV Corp., with LIN Media, as the surviving company in the merger. In February 2014, the Company acquired Federated Media Publishing, Inc.

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