Reviewing Gannett (GCI) & Daily Journal (DJCO)

Gannett (NYSE: GCI) and Daily Journal (NASDAQ:DJCO) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Gannett 0.22% 13.29% 4.43%
Daily Journal 36.72% -0.97% -0.57%

Institutional and Insider Ownership

89.5% of Gannett shares are held by institutional investors. Comparatively, 38.6% of Daily Journal shares are held by institutional investors. 1.1% of Gannett shares are held by insiders. Comparatively, 19.5% of Daily Journal shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Gannett and Daily Journal’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gannett $3.15 billion 0.34 $6.88 million $1.03 9.24
Daily Journal $41.38 million 7.59 -$910,000.00 N/A N/A

Gannett has higher revenue and earnings than Daily Journal.

Risk and Volatility

Gannett has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Daily Journal has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Dividends

Gannett pays an annual dividend of $0.64 per share and has a dividend yield of 6.7%. Daily Journal does not pay a dividend. Gannett pays out 62.1% of its earnings in the form of a dividend. Gannett has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for Gannett and Daily Journal, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gannett 0 0 1 0 3.00
Daily Journal 0 0 0 0 N/A

Summary

Gannett beats Daily Journal on 8 of the 13 factors compared between the two stocks.

Gannett Company Profile

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.

Daily Journal Company Profile

Daily Journal Corporation publishes newspapers and Websites covering in California, Arizona, Colorado, and Utah. It operates in two segments, Traditional Business and Journal Technologies. The company publishes 10 newspapers, including Los Angeles Daily Journal, Daily Commerce, San Francisco Daily Journal, The Daily Recorder, The Inter-City Express, San Jose Post-Record, Orange County Reporter, The Daily Transcript, Business Journal, and The Record Reporter. It also offers specialized information services; and serves as an advertising and newspaper representative for commercial and public notice advertising. In addition, the company supplies case management software systems and related products, including eCourt, eProsecutor, eDefender, and eProbation, which are browser-based case processing systems; JustWare, a family of case management software products; ICMS, a court case management system; eFile, a browser-based interface that allows attorneys and the general public to electronically file documents with the court from a personal computer using the Internet; and ePayIt, a service for the online payment of traffic citations. It offers its software products to courts; prosecutor and public defender offices; probation departments; and other justice agencies, such as administrative law organizations, city and county governments, and bar associations to manage cases and information electronically, to interface with other critical justice partners, and to extend electronic services to bar members and the public in 42 states and internationally. The company was incorporated in 1987 and is based in Los Angeles, California.

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