Reviewing Gannett (NYSE:GCI) & Star Fashion Culture (NASDAQ:STFS)

Star Fashion Culture (NASDAQ:STFS) and Gannett (NYSE:GCI) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional and Insider Ownership

76.7% of Gannett shares are owned by institutional investors. 4.2% of Gannett shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Star Fashion Culture and Gannett”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Star Fashion Culture	$120.79 million	0.01	-$18.26 million	N/A	N/A
Gannett	$2.51 billion	0.27	-$26.35 million	$0.21	21.67

Star Fashion Culture has higher earnings, but lower revenue than Gannett.

Volatility & Risk

Star Fashion Culture has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Gannett has a beta of 2.55, suggesting that its stock price is 155% more volatile than the S&P 500.

Profitability

This table compares Star Fashion Culture and Gannett’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Star Fashion Culture	N/A	N/A	N/A
Gannett	4.11%	42.98%	3.97%

Analyst Recommendations

This is a breakdown of current ratings for Star Fashion Culture and Gannett, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Star Fashion Culture	1	0	0	0	1.00
Gannett	1	1	1	0	2.00

Gannett has a consensus target price of $5.55, indicating a potential upside of 21.98%. Given Gannett’s stronger consensus rating and higher probable upside, analysts plainly believe Gannett is more favorable than Star Fashion Culture.

Summary

Gannett beats Star Fashion Culture on 11 of the 12 factors compared between the two stocks.

About Star Fashion Culture

Star Fashion Culture Holdings Limited provides content marketing solutions services in the People’s Republic of China. It offers marketing campaign planning and execution services; offline advertising services; and online precision marketing services. The company was founded in 2015 and is based in Xiamen, the People’s Republic of China. Star Fashion Culture Holdings Limited operates as a subsidiary of Xingji ZhangPingting Limited.

About Gannett

Gannett Co., Inc. operates as a media and marketing solutions company in the United States. It operates through three segments: Domestic Gannett Media, Newsquest, and Digital Marketing Solutions. The company's print offerings includes home delivery on a subscription basis; single copy; non-daily publications, such as shoppers and niche publications. It also provides digital-only subscription, including local media brands, USA TODAY NETWORK community events platform, magazines, sports, and games; and E-newspapers; and digital advertising and marketing services. In addition, the company offers digital news and media brands; daily and weekly newspapers; digital marketing solutions, such as online presence solutions, online advertising products, conversion software, and cloud-based software solutions; commercial printing and distribution services; and prints commercial materials, including flyers, business cards, and invitations. The company was formerly known as New Media Investment Group Inc. and changed its name to Gannett Co., Inc. in November 2019. Gannett Co., Inc. was incorporated in 2013 and is headquartered in McLean, Virginia.