Contrasting New Media Inv Group (NYSE:NEWM) & Its Peers

New Media Inv Group (NYSE: NEWM) is one of 12 public companies in the “Newspapers” industry, but how does it weigh in compared to its peers? We will compare New Media Inv Group to related businesses based on the strength of its institutional ownership, earnings, profitability, dividends, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

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80.1% of New Media Inv Group shares are owned by institutional investors. Comparatively, 50.0% of shares of all “Newspapers” companies are owned by institutional investors. 5.3% of New Media Inv Group shares are owned by company insiders. Comparatively, 17.9% of shares of all “Newspapers” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

New Media Inv Group has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, New Media Inv Group’s peers have a beta of 1.58, indicating that their average stock price is 58% more volatile than the S&P 500.

Earnings and Valuation

This table compares New Media Inv Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
New Media Inv Group $1.34 billion -$910,000.00 31.74
New Media Inv Group Competitors $4.85 billion $139.19 million 22.95

New Media Inv Group’s peers have higher revenue and earnings than New Media Inv Group. New Media Inv Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

New Media Inv Group pays an annual dividend of $1.48 per share and has a dividend yield of 8.6%. New Media Inv 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. As a group, “Newspapers” companies pay a dividend yield of 3.8% and pay out 90.8% of their earnings in the form of a dividend. New Media Inv Group has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for New Media Inv Group and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Media Inv Group 0 0 1 0 3.00
New Media Inv Group Competitors 36 176 321 8 2.56

As a group, “Newspapers” companies have a potential upside of 11.41%. Given New Media Inv Group’s peers higher probable upside, analysts clearly believe New Media Inv Group has less favorable growth aspects than its peers.

Profitability

This table compares New Media Inv Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Media Inv Group -0.07% 4.18% 2.27%
New Media Inv Group Competitors 5.23% 9.64% 3.40%

Summary

New Media Inv Group peers beat New Media Inv Group on 10 of the 15 factors compared.

About New Media Inv Group

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.

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