TheStreet (TST) and Gannett (GCI) Head to Head Analysis

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

Dividends

Gannett pays an annual dividend of $0.64 per share and has a dividend yield of 6.8%. TheStreet does not pay a dividend. Gannett pays out 62.1% of its earnings in the form of a dividend. Gannett has increased its dividend for 2 consecutive years.



Volatility and Risk

TheStreet has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Gannett has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Institutional and Insider Ownership

44.0% of TheStreet shares are held by institutional investors. Comparatively, 89.5% of Gannett shares are held by institutional investors. 9.7% of TheStreet shares are held by insiders. Comparatively, 0.7% of Gannett shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for TheStreet and Gannett, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TheStreet 0 0 3 0 3.00
Gannett 0 0 1 0 3.00

TheStreet presently has a consensus price target of $3.00, suggesting a potential upside of 57.07%. Given TheStreet’s higher probable upside, analysts plainly believe TheStreet is more favorable than Gannett.

Profitability

This table compares TheStreet and Gannett’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TheStreet 4.21% 14.33% 7.53%
Gannett 0.22% 13.29% 4.43%

Earnings and Valuation

This table compares TheStreet and Gannett’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TheStreet $62.47 million 1.50 $2.62 million $0.08 23.88
Gannett $3.15 billion 0.34 $6.88 million $1.03 9.12

Gannett has higher revenue and earnings than TheStreet. Gannett is trading at a lower price-to-earnings ratio than TheStreet, indicating that it is currently the more affordable of the two stocks.

Summary

TheStreet beats Gannett on 9 of the 16 factors compared between the two stocks.

About TheStreet

TheStreet, Inc. (TheStreet) is a digital financial media company focused on the financial, and mergers and acquisitions environment. The Company’s collection of digital services provides users, subscribers and advertisers with a range of content and tools through a range of online, social media, tablet and mobile channels. With a suite of digital services, TheStreet offers the tools and insights needed to make informed decisions about earning, investing, saving and spending money. TheStreet provides interactive multimedia coverage of the financial markets, economy, industry trends, investment and financial planning. Its subscription products are designed to address the needs of investors with various areas of interest, including fledgling investors, day and swing traders, and fundamental, technical and options traders. Its RateWatch business publishes bank rate market information on a subscription basis to financial institutions and government agencies.

About Gannett

Gannett Co., Inc. operates as a media and marketing solutions company. The company operates through Publishing and ReachLocal segments. The company offers print and digital daily and non-daily publications under the USA TODAY NETWORK brand name in the United States; and Newsquest, which has print and online publications portfolio of approximately 170 news brands and 80 magazines in the United Kingdom. Gannett Co., Inc. operations comprise 130 daily publications and digital platforms the United States and the United Kingdom; and 435 non-daily publications in the United States and 159 such titles in the United Kingdom. It also provides commercial printing, distribution, marketing, and data services; and owns s1 and Exchange & Mart businesses, and a specialist magazine business. In addition, the company offers digital marketing solutions comprising ReachSearch, ReachDisplay, ReachSocial Ads, and ReachRetargeting digital advertising solutions; ReachSite+ReachEdge, ReachSEO, ReachCast, ReachListings, and TotalLiveChat Web presence solutions; and ReachEdge, a marketing automation platform, as well as Kickserv, a cloud-based business management software for service businesses. The company offers its suite of products and solutions to local businesses through its proprietary technology platform, its sales force, and third-party agencies and resellers. It also operates in Canada, Australia, New Zealand, Japan, Germany, Austria, Brazil, and Mexico. The company was formerly known as Gannett SpinCo, Inc. and changed its name to Gannett Co., Inc. in May 2015. Gannett Co., Inc. was incorporated in 2014 and is headquartered in McLean, Virginia.

Receive News & Ratings for TheStreet Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TheStreet and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply