Critical Comparison: New Media Investment Group (NEWM) vs. A. H. Belo (AHC)

New Media Investment Group (NYSE: NEWM) and A. H. Belo (NYSE:AHC) are both small-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Dividends

New Media Investment Group pays an annual dividend of $1.48 per share and has a dividend yield of 8.8%. A. H. Belo pays an annual dividend of $0.32 per share and has a dividend yield of 6.9%. New Media Investment Group pays out 274.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New Media Investment Group has raised its dividend for 3 consecutive years. New Media Investment Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

72.0% of New Media Investment Group shares are held by institutional investors. Comparatively, 59.2% of A. H. Belo shares are held by institutional investors. 2.2% of New Media Investment Group shares are held by insiders. Comparatively, 13.3% of A. H. Belo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares New Media Investment Group and A. H. Belo’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Media Investment Group $1.34 billion 0.76 -$910,000.00 $0.54 31.31
A. H. Belo $248.63 million 0.41 $10.16 million N/A N/A

A. H. Belo has lower revenue, but higher earnings than New Media Investment Group.

Profitability

This table compares New Media Investment Group and A. H. Belo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Media Investment Group 0.15% 3.42% 1.80%
A. H. Belo 4.46% 1.38% 0.75%

Risk and Volatility

New Media Investment Group has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, A. H. Belo has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for New Media Investment Group and A. H. Belo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Media Investment Group 0 0 0 0 N/A
A. H. Belo 0 0 0 0 N/A

Summary

New Media Investment Group beats A. H. Belo on 8 of the 13 factors compared between the two stocks.

New Media Investment Group Company Profile

New Media Investment Group Inc. invests in, owns, and operates local media assets in the United States. The company's principal products include 142 daily newspapers with total paid circulation of approximately 1.5 million; 326 weekly newspapers with total paid circulation of approximately 318,000 and total free circulation of approximately 2.0 million; 140 shoppers with total circulation of approximately 3.5 million; and 569 locally-focused Websites, including Internet and mobile devices with approximately 290 million page views per month. Its principal products also comprise 2 yellow page directories with a distribution of approximately 290,000 that cover a population of approximately 419,000 people; 70 business publications; and UpCurve Cloud and ThriveHive digital marketing services. In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it produces approximately 250 annual events with a collective attendance approximately 300,000, such as themed expo, signature event, and white label event services. Additionally, the company offers print and online products that offer local market news and information on various topics comprising local news and politics, community and regional events, youth sports, opinion and editorial pages, local schools, obituaries, weddings, and police reports, as well as print and digital marketing products, and commercial printing services. It reaches approximately 22 million people per week; and serves approximately 215,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York.

A. H. Belo Company Profile

A.H. Belo Corporation, together with its subsidiaries, operates as a local news and information publishing company primarily in the United States. The company operates through two segments, Publishing and Marketing Services. The Publishing segment publishes The Dallas Morning News, a newspaper; Briefing newspaper; and Al Dia, a Spanish-language newspaper, as well as operates related Websites and applications. It also provides commercial printing, distribution, and direct mail services; event activation and promotion services; and automotive classifieds on the cars.com platform. The Marketing Services Segment offers digital marketing services, such as multi-channel marketing solutions through subscription sales of its cloud-based software; marketing analytics, search engine marketing, and other marketing related services; social media account management and content marketing services; and multi-channel advertising campaigns management services, as well as promotional products for businesses. A.H. Belo Corporation was founded in 1842 and is headquartered in Dallas, Texas.

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