John Wiley & Sons (NYSE:WLYB – Get Free Report) and National CineMedia (NASDAQ:NCMI – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Valuation and Earnings
This table compares John Wiley & Sons and National CineMedia”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| John Wiley & Sons | $1.68 billion | 1.47 | $221.62 million | $3.78 | 12.83 |
| National CineMedia | $243.20 million | 0.86 | -$10.60 million | ($0.09) | -24.83 |
Dividends
John Wiley & Sons pays an annual dividend of $1.43 per share and has a dividend yield of 2.9%. National CineMedia pays an annual dividend of $0.12 per share and has a dividend yield of 5.4%. John Wiley & Sons pays out 37.8% of its earnings in the form of a dividend. National CineMedia pays out -133.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. John Wiley & Sons has increased its dividend for 26 consecutive years. National CineMedia is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
0.5% of John Wiley & Sons shares are owned by institutional investors. Comparatively, 69.5% of National CineMedia shares are owned by institutional investors. 29.7% of John Wiley & Sons shares are owned by company insiders. Comparatively, 1.7% of National CineMedia shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares John Wiley & Sons and National CineMedia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| John Wiley & Sons | 11.90% | 27.99% | 8.16% |
| National CineMedia | -3.05% | -1.31% | -0.99% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for John Wiley & Sons and National CineMedia, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| John Wiley & Sons | 0 | 1 | 0 | 0 | 2.00 |
| National CineMedia | 0 | 3 | 3 | 0 | 2.50 |
National CineMedia has a consensus price target of $4.81, indicating a potential upside of 115.32%. Given National CineMedia’s stronger consensus rating and higher possible upside, analysts clearly believe National CineMedia is more favorable than John Wiley & Sons.
Risk & Volatility
John Wiley & Sons has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, National CineMedia has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.
Summary
John Wiley & Sons beats National CineMedia on 10 of the 17 factors compared between the two stocks.
About John Wiley & Sons
John Wiley & Sons, Inc. engages in the provision of research and learning materials. It operates through the following segments: Research, Learning, and Held for Sale or Sold. The Research segment consists of research publishing and research solutions. The Learning segment includes academic and professional reporting lines and consists of publishing and related knowledge solutions. The Held for Sale or Sold segment offers businesses held-for-sale including Wiley Edge and CrossKnowledge, University Services and Tuition Manager, and Test Prep and Advancement Courses. The company was founded by Charles Wiley in 1807 and is headquartered in Hoboken, NJ.
About National CineMedia
National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.
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