TEGNA (NYSE: TGNA) and Entravision Communications Corporation (NYSE:EVC) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Dividends

TEGNA pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Entravision Communications Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 3.5%. TEGNA pays out 17.0% of its earnings in the form of a dividend. Entravision Communications Corporation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TEGNA has raised its dividend for 3 consecutive years.

Risk and Volatility

TEGNA has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Entravision Communications Corporation has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Insider and Institutional Ownership

98.0% of TEGNA shares are owned by institutional investors. Comparatively, 58.3% of Entravision Communications Corporation shares are owned by institutional investors. 0.8% of TEGNA shares are owned by company insiders. Comparatively, 20.7% of Entravision Communications Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares TEGNA and Entravision Communications Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TEGNA $3.35 billion 0.85 $1.17 billion $1.65 8.01
Entravision Communications Corporation $263.59 million 1.43 $61.52 million $0.21 27.14

TEGNA has higher revenue and earnings than Entravision Communications Corporation. TEGNA is trading at a lower price-to-earnings ratio than Entravision Communications Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TEGNA and Entravision Communications Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TEGNA 11.90% 20.51% 5.56%
Entravision Communications Corporation 7.03% 10.05% 3.50%

Analyst Ratings

This is a summary of current ratings and recommmendations for TEGNA and Entravision Communications Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TEGNA 1 6 3 0 2.20
Entravision Communications Corporation 0 2 1 0 2.33

TEGNA presently has a consensus price target of $18.63, suggesting a potential upside of 40.99%. Entravision Communications Corporation has a consensus price target of $7.00, suggesting a potential upside of 22.81%. Given TEGNA’s higher possible upside, equities research analysts plainly believe TEGNA is more favorable than Entravision Communications Corporation.

Summary

TEGNA beats Entravision Communications Corporation on 12 of the 17 factors compared between the two stocks.

TEGNA Company Profile

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.

Entravision Communications Corporation Company Profile

Entravision Communications Corporation is a media company. The Company reaches and engages Hispanics in the United States and certain border markets of Mexico across media channels and advertising platforms. The Company operates through three segments: television broadcasting, radio broadcasting and digital media. As of December 31, 2016, the Company owned and operated 54 television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, District of Columbia. It owns and operates Spanish-language radio stations in the United States. As of December 31, 2016, its radio stations consisted of 38 frequency modulation (FM) and 11 amplitude modulation (AM) stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The digital media segment provides digital advertising solutions that allow advertisers to reach online Hispanic audiences throughout the United States and Mexico.

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