Lee Enterprises (NYSE: LEE) and Daily Journal (NASDAQ:DJCO) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Earnings and Valuation
This table compares Lee Enterprises and Daily Journal’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lee Enterprises||$566.94 million||0.25||$27.48 million||$0.50||4.90|
|Daily Journal||$41.38 million||8.07||-$910,000.00||($0.66)||-366.67|
Lee Enterprises has higher revenue and earnings than Daily Journal. Daily Journal is trading at a lower price-to-earnings ratio than Lee Enterprises, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Lee Enterprises has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500. Comparatively, Daily Journal has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.
This is a summary of recent ratings for Lee Enterprises and Daily Journal, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional & Insider Ownership
31.8% of Lee Enterprises shares are held by institutional investors. Comparatively, 37.7% of Daily Journal shares are held by institutional investors. 7.3% of Lee Enterprises shares are held by company insiders. Comparatively, 19.5% of Daily Journal shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Lee Enterprises and Daily Journal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Lee Enterprises beats Daily Journal on 8 of the 11 factors compared between the two stocks.
About Lee Enterprises
Lee Enterprises, Incorporated is a provider of local news and information, and a platform for print and digital advertising. The Company’s products included 46 daily and 34 Sunday newspapers, 300 weekly newspapers, and classified and niche publications, as of September 25, 2016. The Company also provides a range of digital products, including video, digital couponing, behavioral targeting, audience retargeting, banner advertisements and social networking. It provides digital marketing services to small and midsized businesses (SMBs), including search engine marketing (SEM), social media, audience extension, business profiles, and Website hosting and design. It offers small business solutions, including search engine optimization (SEO), local online marketing, social media marketing, video advertising and Website design. The markets it caters to are located primarily in the Midwest, Mountain West and West regions of the United States.
About Daily Journal
Daily Journal Corporation publishes newspapers and Websites covering California and Arizona, and produces various specialized information services. The Company also serves as a newspaper representative specializing in public notice advertising. It operates through two segments: Traditional Business and Journal Technologies. The Traditional Business segment provides newspaper publishing and related services. The Journal Technologies segment supplies case management software systems and related products to courts, prosecutor and public defender offices, probation departments and other justice agencies, including administrative law organizations, city and county governments and bar associations. These organizations use the Journal Technologies family of products to help manage cases and information electronically, to interface with other justice partners and to extend electronic services to bar members and the public. Its subsidiary is Journal Technologies, Inc. (Journal Technologies).
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