Tronc (NASDAQ: TRNC) and Gannett (NYSE:GCI) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
Risk and Volatility
Tronc has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500. Comparatively, Gannett has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Tronc and Gannett, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tronc presently has a consensus price target of $22.00, suggesting a potential upside of 15.79%. Given Tronc’s higher possible upside, analysts clearly believe Tronc is more favorable than Gannett.
Valuation & Earnings
This table compares Tronc and Gannett’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tronc||$1.52 billion||0.44||$5.53 million||$1.08||17.59|
|Gannett||$3.15 billion||0.34||$6.88 million||$1.03||9.28|
Gannett has higher revenue and earnings than Tronc. Gannett is trading at a lower price-to-earnings ratio than Tronc, indicating that it is currently the more affordable of the two stocks.
This table compares Tronc and Gannett’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Gannett pays an annual dividend of $0.64 per share and has a dividend yield of 6.7%. Tronc does not pay a dividend. Gannett pays out 62.1% of its earnings in the form of a dividend. Gannett has increased its dividend for 2 consecutive years.
Institutional & Insider Ownership
38.5% of Tronc shares are owned by institutional investors. Comparatively, 89.5% of Gannett shares are owned by institutional investors. 1.7% of Tronc shares are owned by insiders. Comparatively, 1.1% of Gannett shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Tronc beats Gannett on 10 of the 16 factors compared between the two stocks.
Tronc Company Profile
tronc, Inc., a media company, publishes newspapers worldwide. The company operates in two segments, troncM and troncX. It publishes daily newspapers; weekly newspapers; and digital platforms, such as Websites and mobile applications. The company also provides various digital marketing services, which include the development of mobile Websites, search engine marketing and optimization, social media account management, and content marketing for its customers' Web presence for small to medium size businesses. In addition, it offers TCA, a syndication and licensing business that provides daily news service and syndicated premium content to 1,700 media and digital information publishers; and forsalebyowner.com, a national consumer-to-consumer focused real estate Website. The company was formerly known as Tribune Publishing Company and changed its name to tronc, Inc. in June 2016. tronc, Inc. was founded in 2013 and is headquartered in Chicago, Illinois.
Gannett Company Profile
Gannett Co., Inc. operates as a media and marketing solutions company. The company operates through Publishing and ReachLocal segments. The company offers print and digital daily and non-daily publications under the USA TODAY NETWORK brand name in the United States; and Newsquest, which has print and online publications portfolio of approximately 170 news brands and 80 magazines in the United Kingdom. Gannett Co., Inc. operations comprise 130 daily publications and digital platforms the United States and the United Kingdom; and 435 non-daily publications in the United States and 159 such titles in the United Kingdom. It also provides commercial printing, distribution, marketing, and data services; and owns s1 and Exchange & Mart businesses, and a specialist magazine business. In addition, the company offers digital marketing solutions comprising ReachSearch, ReachDisplay, ReachSocial Ads, and ReachRetargeting digital advertising solutions; ReachSite+ReachEdge, ReachSEO, ReachCast, ReachListings, and TotalLiveChat Web presence solutions; and ReachEdge, a marketing automation platform, as well as Kickserv, a cloud-based business management software for service businesses. The company offers its suite of products and solutions to local businesses through its proprietary technology platform, its sales force, and third-party agencies and resellers. It also operates in Canada, Australia, New Zealand, Japan, Germany, Austria, Brazil, and Mexico. The company was formerly known as Gannett SpinCo, Inc. and changed its name to Gannett Co., Inc. in May 2015. Gannett Co., Inc. was incorporated in 2014 and is headquartered in McLean, Virginia.
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