Meredith (NYSE:MDP) and AMREP (NYSE:AXR) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Institutional & Insider Ownership
19.7% of AMREP shares are held by institutional investors. 4.7% of Meredith shares are held by insiders. Comparatively, 25.4% of AMREP shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Meredith and AMREP, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Meredith currently has a consensus price target of $66.00, suggesting a potential upside of 15.22%. Given Meredith’s higher possible upside, equities analysts clearly believe Meredith is more favorable than AMREP.
Meredith pays an annual dividend of $2.18 per share and has a dividend yield of 3.8%. AMREP does not pay a dividend. Meredith pays out 85.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Meredith has increased its dividend for 5 consecutive years.
Earnings and Valuation
This table compares Meredith and AMREP’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Meredith||$2.25 billion||1.14||$99.40 million||$2.54||22.55|
Meredith has higher revenue and earnings than AMREP.
This table compares Meredith and AMREP’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Meredith has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, AMREP has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
Meredith beats AMREP on 10 of the 15 factors compared between the two stocks.
Meredith Corporation operates as a diversified media company in the United States, Europe, and Asia. It operates in two segments, National Media and Local Media. The National Media segment offers national consumer media brands through various media platforms, including print magazines, digital and mobile media, brand licensing activities, database-related activities, affinity marketing, and business-to-business marketing products and services. It publishes media in entertainment, food, lifestyle, parenting, and home categories, such as People, Better Homes & Gardens, InStyle, Allrecipes, Real Simple, Shape, Southern Living, Martha Stewart Living, and other brands, as well as 275 special interest publications under approximately 68 brands. This segment operates approximately 60 Websites, 60 mobile-optimized Websites, and 14 applications. It is also involved in the third-party marketing, consumer database, and other related operations, as well as provision of magazine advertising and circulation, digital and customer relationship marketing, other custom publishing project, and ancillary products and services. In addition, this segment operates The Foundry, a creative content studio, which develops content marketing programs across various platforms comprising native advertising that enable clients to engage new consumers and build long-term relationships with existing customers for a range of industries. The Local Media segment operates approximately 17 television stations that include 7 CBS affiliates, 5 FOX affiliates, 2 MyNetworkTV affiliates, 1 NBC affiliate, 1 ABC affiliate, and 2 independent stations. It also includes 12 Websites, 12 mobile-optimized Websites, and approximately 30 applications focused on news, sports, and weather-related information. In addition, this segment sells geographic and demographic-targeted digital and print advertising programs to third parties. The company was founded in 1902 and is headquartered in Des Moines, Iowa.
AMREP Corporation, through its subsidiaries, provides real estate and fulfillment services. The company's Real Estate Operations segment is involved in the sale of developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others, as well as investment in commercial and investment properties. Its property portfolio consists of approximately 91,000 acres in Sandoval County near Albuquerque, New Mexico; and tracts of land in Colorado, including 1 property of approximately 160 acres planned for approximately 410 homes. This segment also owns interests in subsurface oil, gas, and mineral properties covering an area of approximately 55,000 surface acres of land located in Rio Rancho. The company's Fulfillment Services segment provides fulfillment and contact center services, including subscriber list and database management, payment and order processing and accounting, subscriber mailing services, customer service and contact center management, data processing and business intelligence solutions, and print and digital marketing solutions, as well as product fulfillment warehousing, processing, and distribution services. This segment offers its services for consumer publications, trade publications, membership organizations, non-profit organizations, government agencies, and other direct marketers. The company was founded in 1961 and is headquartered in Plymouth Meeting, Pennsylvania.
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