Media General (NYSE: MEG) and Tribune Media (NYSE:TRCO) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Volatility & Risk

Media General has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, Tribune Media has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Earnings and Valuation

This table compares Media General and Tribune Media’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Media General N/A N/A N/A ($0.47) -39.38
Tribune Media $1.91 billion 1.82 $370.02 million $0.49 81.53

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

Institutional & Insider Ownership

90.8% of Media General shares are owned by institutional investors. 16.5% of Media General 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, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Media General -4.25% 6.92% 2.28%
Tribune Media 2.49% 4.38% 1.63%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Media General and Tribune Media, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Media General 0 0 0 0 N/A
Tribune Media 1 3 1 0 2.00

Tribune Media has a consensus price target of $44.50, indicating a potential upside of 11.39%. Given Tribune Media’s higher possible upside, analysts clearly believe Tribune Media is more favorable than Media General.

Dividends

Tribune Media pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Media General does not pay a dividend. Tribune Media pays out 204.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

About Media General

Media General, Inc. is a television broadcasting and digital media company. The Company provides news, information and entertainment in markets across the United States. The Company operates or services 71 network-affiliated broadcast television stations in 48 markets along with the digital media business. The Company’s network affiliations include twelve CBS stations, nine NBC stations, seven ABC stations, one FOX station, one CW station and one MyNetworkTV station. The Company offers consumers and advertisers with entertainment and information, content and distribution on every screen. Its portfolio of broadcast, digital and mobile products informs and engages 23% of United States Television (TV) households and 43% of the United States Internet audience. The Company has the diverse digital media business with a portfolio that includes LIN Digital, LIN Mobile, HYFN, Dedicated Media, Federated Media and BiteSizeTV.

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