Contrasting TEGNA (TGNA) and Phoenix New Media (FENG)

TEGNA (NYSE: FENG) and Phoenix New Media (NYSE:FENG) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

94.3% of TEGNA shares are owned by institutional investors. Comparatively, 15.3% of Phoenix New Media shares are owned by institutional investors. 0.4% of TEGNA shares are owned by insiders. Comparatively, 10.9% of Phoenix New Media shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares TEGNA and Phoenix New Media’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TEGNA $1.90 billion 1.32 $273.74 million $1.08 10.78
Phoenix New Media $242.09 million 1.53 $5.75 million $0.08 64.00

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

Profitability

This table compares TEGNA and Phoenix New Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TEGNA 25.33% 27.72% 5.21%
Phoenix New Media 2.14% 1.31% 0.93%

Risk and Volatility

TEGNA has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, Phoenix New Media has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for TEGNA and Phoenix New Media, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TEGNA 1 5 6 0 2.42
Phoenix New Media 0 0 2 0 3.00

TEGNA presently has a consensus target price of $14.62, indicating a potential upside of 25.56%. Phoenix New Media has a consensus target price of $9.05, indicating a potential upside of 76.76%. Given Phoenix New Media’s stronger consensus rating and higher possible upside, analysts plainly believe Phoenix New Media is more favorable than TEGNA.

Dividends

TEGNA pays an annual dividend of $0.28 per share and has a dividend yield of 2.4%. Phoenix New Media does not pay a dividend. TEGNA pays out 25.9% of its earnings in the form of a dividend.

Summary

TEGNA beats Phoenix New Media on 9 of the 16 factors compared between the two stocks.

TEGNA Company Profile

TEGNA Inc., a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products. The company also sells commercial advertising spots of its television stations. In addition, it operates Premion, an over the top local advertising network; Hatch, a centralized 360-degree marketing services agency; and radio broadcast stations. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in McLean, Virginia.

Phoenix New Media Company Profile

Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates in two segments, Net Advertising Services and Paid Services. It offers content and services through three channels, including PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its Website, ifeng.com, provides approximately 40 Interest-based verticals, such as news, finance, fashion, entertainment, automobiles, live broadcasting, we-media, military affairs, sports, history, and PC digital reading; offers interactive services, including comments posting and user surveys; and operates third-party developed Web-based games on its game platform, play.ifeng.com, as well as v.ifeng.com vertical that offers free online video on demand, live Phoenix TV broadcasts, online video subscription services, and pay-per-view online video services. Its mobile channel consists of ifeng News, a news application that provides news feeds and other contents in the form of text, image, live broadcasting, and video; ifeng Video, a video application, which offers video news, live broadcasting, and Phoenix TV programs content, etc.; i.ifeng.com mobile Internet Website; and Fanyue Novel, a digital reading application that provides fee-based Internet literatures. In addition, the company offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services comprising SMS-based, music, IVR-based, MMS-based, and animation services. The company was incorporated in 2007 and is based in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I) Holding Limited.

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