The McClatchy (OTCMKTS:MNIQQ) and Tribune Publishing (NASDAQ:TPCO) are both small-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

25.1% of The McClatchy shares are held by institutional investors. Comparatively, 64.5% of Tribune Publishing shares are held by institutional investors. 30.5% of The McClatchy shares are held by company insiders. Comparatively, 2.2% of Tribune Publishing shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares The McClatchy and Tribune Publishing’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The McClatchy $807.23 million 0.00 -$79.76 million ($6.21) -0.01
Tribune Publishing $983.15 million 0.28 -$5.07 million N/A N/A

Tribune Publishing has higher revenue and earnings than The McClatchy.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for The McClatchy and Tribune Publishing, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The McClatchy 0 1 0 0 2.00
Tribune Publishing 0 0 1 0 3.00

Tribune Publishing has a consensus price target of $14.00, indicating a potential upside of 86.42%. Given Tribune Publishing’s stronger consensus rating and higher possible upside, analysts plainly believe Tribune Publishing is more favorable than The McClatchy.

Volatility & Risk

The McClatchy has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Tribune Publishing has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Profitability

This table compares The McClatchy and Tribune Publishing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The McClatchy -52.97% N/A -2.90%
Tribune Publishing -0.52% -1.19% -0.60%

Summary

Tribune Publishing beats The McClatchy on 10 of the 12 factors compared between the two stocks.

The McClatchy Company Profile

The McClatchy Company publishes newspapers and news Websites in the United States. Its publications include the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, and The (Fort Worth) Star-Telegram. It also provides niche publications and community newspapers, as well as other print and digital direct marketing services. The company distributes content, including video products, through its owned and operated Websites and mobile applications, third-party search and ad exchanges, social media platforms, and electronic editions of its daily newspapers, as well as its printed daily newspapers. The McClatchy Company was founded in 1857 and is headquartered in Sacramento, California. On February 13, 2020, The McClatchy Company along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

Tribune Publishing Company Profile

Tribune Publishing Company, a media company, publishes newspapers worldwide. The company operates in two segments, M and X. 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 approximately 2,000 media and digital information publishers. The company was formerly known as tronc, Inc. and changed its name to Tribune Publishing Company in October 2018. Tribune Publishing Company was founded in 2013 and is headquartered in Chicago, Illinois.

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