Analyzing TheStreet (TST) and Thomson Reuters Corp (TRI)

TheStreet (NASDAQ: TST) and Thomson Reuters Corp (NYSE:TRI) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Institutional & Insider Ownership

46.8% of TheStreet shares are owned by institutional investors. Comparatively, 26.2% of Thomson Reuters Corp shares are owned by institutional investors. 9.7% of TheStreet shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for TheStreet and Thomson Reuters Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TheStreet 0 0 2 0 3.00
Thomson Reuters Corp 1 6 5 0 2.33

TheStreet currently has a consensus target price of $2.05, indicating a potential upside of 113.54%. Thomson Reuters Corp has a consensus target price of $50.30, indicating a potential upside of 10.14%. Given TheStreet’s stronger consensus rating and higher possible upside, research analysts plainly believe TheStreet is more favorable than Thomson Reuters Corp.

Risk and Volatility

TheStreet has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Thomson Reuters Corp has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Dividends

Thomson Reuters Corp pays an annual dividend of $1.38 per share and has a dividend yield of 3.0%. TheStreet does not pay a dividend. Thomson Reuters Corp pays out 33.9% of its earnings in the form of a dividend. TheStreet has raised its dividend for 9 consecutive years.

Valuation & Earnings

This table compares TheStreet and Thomson Reuters Corp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TheStreet $62.38 million 0.55 $19,389.00 ($0.38) -2.53
Thomson Reuters Corp $11.20 billion 2.91 $2.52 billion $4.07 11.22

Thomson Reuters Corp has higher revenue and earnings than TheStreet. TheStreet is trading at a lower price-to-earnings ratio than Thomson Reuters Corp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TheStreet and Thomson Reuters Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TheStreet -21.87% -1.30% -0.71%
Thomson Reuters Corp 26.81% 13.64% 6.42%

Summary

Thomson Reuters Corp beats TheStreet on 10 of the 16 factors compared between the two stocks.

TheStreet Company Profile

TheStreet, Inc. (TheStreet) is a digital financial media company focused on the financial, and mergers and acquisitions environment. The Company’s collection of digital services provides users, subscribers and advertisers with a range of content and tools through a range of online, social media, tablet and mobile channels. With a suite of digital services, TheStreet offers the tools and insights needed to make informed decisions about earning, investing, saving and spending money. TheStreet provides interactive multimedia coverage of the financial markets, economy, industry trends, investment and financial planning. Its subscription products are designed to address the needs of investors with various areas of interest, including fledgling investors, day and swing traders, and fundamental, technical and options traders. Its RateWatch business publishes bank rate market information on a subscription basis to financial institutions and government agencies.

Thomson Reuters Corp Company Profile

Thomson Reuters Corporation (Thomson Reuters) is a Canada-based provider of news and information for professional markets. The Company is organized in three business units: Financial & Risk, Legal, and Tax & Accounting. The Financial & Risk unit is a provider of critical news, information and analytics, enabling transactions and connecting communities of trading, investment, financial and corporate professionals. The Legal unit is a provider of critical online and print information, decision tools, software and services that support legal, investigation, business and government professionals around the world. The Tax & Accounting unit is a provider of integrated tax compliance and accounting information, software and services for professionals in accounting firms, corporations, law firms and government. The Company also operates Reuters, Global Growth Organization (GGO) and Enterprise Technology & Operations (ET&O). Thomson Reuters operates in over 100 countries.

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