Time (NYSE: TIME) and McClatchy Company (The) (NYSE:MNI) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitabiliy and analyst recommendations.
Profitability
This table compares Time and McClatchy Company (The)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Time | -2.18% | 7.30% | 2.54% |
| McClatchy Company (The) | -14.81% | -13.89% | -0.55% |
Dividends
Time pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. McClatchy Company (The) does not pay a dividend. Time pays out -23.5% of its earnings in the form of a dividend.
Analyst Recommendations
This is a breakdown of current recommendations for Time and McClatchy Company (The), as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Time | 0 | 3 | 1 | 0 | 2.25 |
| McClatchy Company (The) | 0 | 1 | 0 | 0 | 2.00 |
Time currently has a consensus price target of $15.25, suggesting a potential upside of 10.51%. Given Time’s stronger consensus rating and higher probable upside, analysts plainly believe Time is more favorable than McClatchy Company (The).
Earnings & Valuation
This table compares Time and McClatchy Company (The)’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Time | $3.03 billion | 0.45 | $383.00 million | ($0.68) | -20.29 |
| McClatchy Company (The) | $943.21 million | 0.04 | $147.90 million | ($18.41) | -0.39 |
Time has higher revenue and earnings than McClatchy Company (The). Time is trading at a lower price-to-earnings ratio than McClatchy Company (The), indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
91.7% of Time shares are held by institutional investors. Comparatively, 39.0% of McClatchy Company (The) shares are held by institutional investors. 1.9% of Time shares are held by company insiders. Comparatively, 34.9% of McClatchy Company (The) shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Time has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, McClatchy Company (The) has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Summary
Time beats McClatchy Company (The) on 13 of the 15 factors compared between the two stocks.
About Time
Time Inc. is a media and content company. The Company offers a portfolio of news and lifestyle brands across a range of interest areas. As of December 31, 2016, the Company’s brands included People, Time, Fortune, Sports Illustrated, InStyle, Real Simple, Southern Living, Entertainment Weekly, Food & Wine, Travel + Leisure and Essence, as well as approximately 50 titles in the United Kingdom. The Company also offers its brands through other media and platforms including licensing, video and television, live events and paid products and services. The Company also offers events, such as the Time 100, Fortune Most Powerful Women, People’s Sexiest Man Alive, Sports Illustrated’s Sportsperson of the Year, the Essence Festival and the Food & Wine Classic in Aspen. It is a subscription marketer in the United States media industry. It also offers its advertisers a range of analytics and research services, including consumer insights, audience measurement and accountability reporting.
About McClatchy Company (The)
The McClatchy Company is a news and information publisher of various publications, such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News and Observer, and the (Fort Worth) Star-Telegram. The Company’s segments include Western Segment and Eastern Segment. Its Western Segment consists of its newspaper operations in California, the Northwest and the Midwest. The Company’s Eastern Segment consists primarily of newspaper operations in the Southeast and Florida. The Company operates 30 media companies in 29 United States markets in 14 states, providing each of these communities with news and advertising services in a range of digital and print formats. The Company’s operations include approximately 30 local media businesses United States that consist of daily newspapers, Websites and mobile applications, publications, direct marketing, direct mail services and community newspapers.
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