New York Times (NYSE: NYT) and Daily Journal (NASDAQ:DJCO) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Risk and Volatility
New York Times has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Daily Journal has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.
New York Times pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Daily Journal does not pay a dividend. New York Times pays out 26.2% of its earnings in the form of a dividend. New York Times has raised its dividend for 4 consecutive years.
This table compares New York Times and Daily Journal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New York Times||6.02%||13.46%||5.37%|
Valuation & Earnings
This table compares New York Times and Daily Journal’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New York Times||$1.56 billion||2.01||$29.06 million||$0.61||31.56|
|Daily Journal||$41.38 million||7.72||-$910,000.00||($0.66)||-350.61|
New York Times has higher revenue and earnings than Daily Journal. Daily Journal is trading at a lower price-to-earnings ratio than New York Times, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
67.9% of New York Times shares are owned by institutional investors. Comparatively, 37.7% of Daily Journal shares are owned by institutional investors. 5.7% of New York Times shares are owned by insiders. Comparatively, 19.5% of Daily Journal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings for New York Times and Daily Journal, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New York Times||1||2||0||0||1.67|
New York Times presently has a consensus price target of $13.93, suggesting a potential downside of 27.62%. Given New York Times’ higher possible upside, research analysts clearly believe New York Times is more favorable than Daily Journal.
New York Times beats Daily Journal on 11 of the 15 factors compared between the two stocks.
New York Times Company Profile
The New York Times Company is a media company focused on creating, collecting and distributing news and information. The Company’s principal business consists of distributing content generated by its newsroom through its print, Web and mobile platforms. In addition, it distributes selected content on third-party platforms. The Company includes newspapers, print and digital products and investments. The Company’s businesses include newspapers, such as The New York Times (The Times); Websites, including NYTimes.com; mobile applications, including The Times’s news applications, as well as interest-specific applications, such as NYT Cooking, Crossword and others, and related businesses, such as The Times news services division, product review and recommendation Websites The Wirecutter and The Sweethome, digital archive distribution, NYT Live (its live events business) and other products and services under The Times brand.
Daily Journal Company Profile
Daily Journal Corporation publishes newspapers and Websites covering California and Arizona, and produces various specialized information services. The Company also serves as a newspaper representative specializing in public notice advertising. It operates through two segments: Traditional Business and Journal Technologies. The Traditional Business segment provides newspaper publishing and related services. The Journal Technologies segment supplies case management software systems and related products to courts, prosecutor and public defender offices, probation departments and other justice agencies, including administrative law organizations, city and county governments and bar associations. These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other justice partners and to extend electronic services to bar members and the public. Its subsidiary is Journal Technologies, Inc. (Journal Technologies).
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