Comparing USA Today (TDAY) & Its Rivals
by Michael Walen · The Markets DailyUSA Today (NYSE:TDAY – Get Free Report) is one of 257 publicly-traded companies in the “Media” industry, but how does it contrast to its peers? We will compare USA Today to similar businesses based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, earnings, risk and dividends.
Volatility & Risk
USA Today has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, USA Today’s peers have a beta of 0.96, indicating that their average stock price is 4% less volatile than the S&P 500.
Profitability
This table compares USA Today and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| USA Today | -1.81% | -21.13% | -1.85% |
| USA Today Competitors | -19.68% | -48.15% | -4.99% |
Earnings and Valuation
This table compares USA Today and its peers gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| USA Today | $2.30 billion | $1.75 million | -21.77 |
| USA Today Competitors | $2.97 billion | $35.12 million | 7.29 |
USA Today’s peers have higher revenue and earnings than USA Today. USA Today is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
76.7% of USA Today shares are held by institutional investors. Comparatively, 38.1% of shares of all “Media” companies are held by institutional investors. 4.4% of USA Today shares are held by insiders. Comparatively, 17.5% of shares of all “Media” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations and price targets for USA Today and its peers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USA Today | 1 | 0 | 3 | 0 | 2.50 |
| USA Today Competitors | 2323 | 6910 | 10759 | 489 | 2.46 |
USA Today currently has a consensus price target of $9.50, suggesting a potential upside of 45.48%. As a group, “Media” companies have a potential upside of 25.69%. Given USA Today’s stronger consensus rating and higher probable upside, equities analysts plainly believe USA Today is more favorable than its peers.
Summary
USA Today beats its peers on 8 of the 13 factors compared.
About USA Today
Gannett Co Inc. invests in, owns, and operates local media assets in the United States. The company’s principal products include 125 daily newspapers with total paid circulation of approximately 1.4 million; 314 weekly newspapers with total paid circulation of approximately 315,000 and total free circulation of approximately 1.9 million; 124 shoppers with total circulation of approximately 3.0 million; and 538 locally-focused Websites, including Internet and mobile devices with approximately 224 million page views per month. Its principal products also comprise 2 yellow page directories with a total distribution of approximately 230,000 that cover a population of approximately 411,000 people; 68 business publications; and Propel digital marketing and business services. In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it provides 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 advertising products, as well as commercial printing and regional business-oriented publications services. The company reaches approximately 20 million people per week; and serves approximately 220,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York.