New York Times (NYSE:NYT – Get Rating) and Schibsted ASA (OTCMKTS:SBSNF – Get Rating) are both communication services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
Dividends
New York Times pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. Schibsted ASA pays an annual dividend of $3.50 per share and has a dividend yield of 20.6%. New York Times pays out 38.3% of its earnings in the form of a dividend. Schibsted ASA pays out 27.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. New York Times has increased its dividend for 5 consecutive years. Schibsted ASA is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
89.6% of New York Times shares are held by institutional investors. Comparatively, 20.9% of Schibsted ASA shares are held by institutional investors. 2.0% of New York Times shares are held 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
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New York Times | 0 | 3 | 1 | 0 | 2.25 |
| Schibsted ASA | 0 | 1 | 0 | 0 | 2.00 |
New York Times currently has a consensus price target of $37.00, indicating a potential downside of 1.65%. Given New York Times’ stronger consensus rating and higher possible upside, equities analysts plainly believe New York Times is more favorable than Schibsted ASA.
Earnings and Valuation
This table compares New York Times and Schibsted ASA’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New York Times | $2.31 billion | 2.68 | $173.90 million | $1.15 | 32.71 |
| Schibsted ASA | N/A | N/A | N/A | $12.97 | 1.31 |
New York Times has higher revenue and earnings than Schibsted ASA. Schibsted ASA is trading at a lower price-to-earnings ratio than New York Times, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares New York Times and Schibsted ASA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New York Times | 8.21% | 13.49% | 8.42% |
| Schibsted ASA | N/A | N/A | N/A |
Summary
New York Times beats Schibsted ASA on 11 of the 14 factors compared between the two stocks.
About New York Times
The New York Times Company, together with its subsidiaries, provides news and information for readers and viewers across various platforms worldwide. It offers The New York Times (The Times), a daily and Sunday newspaper in the United States, as well as international edition of The Times; and operates the NYTimes.com website. The company also licenses articles, graphics, and photographs to newspapers, magazines and websites; and licenses content to digital aggregators in the business, professional, academic and library markets; third-party digital platforms; and for use in television, films and books. In addition, it engages in the live events business, which hosts events to connect audiences with journalists and outside thought leaders; and digital advertising business that includes direct-sold website, mobile application, podcast, email, and video advertisements. Further, the company offers The Athletic, a sports media product; Cooking, a recipe product; Games, a puzzle games product; and Audm, a read-aloud audio service that are available on mobile applications and websites, as well as Wirecutter, a product review and recommendation product. It also prints and distributes products for third parties; and offers other products and services. The company was founded in 1851 and is headquartered in New York, New York.
About Schibsted ASA
Schibsted ASA, together with its subsidiaries, operates as a media company. The company operates through Nordic Marketplaces, News Media, eCommerce & Distribution, and Financial Services & Ventures segments. It operates online classified operations that provide technology-based services to connect buyers and sellers and facilitate transactions from job offers to real estate, cars, travel, consumer goods, and others. The company also offers news brands, such as VG, Aftenposten, Bergens Tidende, Aftonbladet, and Svenska Dagbladet in paper and digital formats, as well as operates printing plant. In addition, the company distributes newspapers and parcels for businesses and consumers under the Helthjem and Morgenlevering brands. Further, it has a portfolio of digital companies, which include Lendo that offers digital marketplaces for consumer lending; and Prisjakt, which offers price comparison for consumers. The company operates in Norway, Sweden, Finland, Denmark, other European countries, and internationally. Schibsted ASA was founded in 1839 and is headquartered in Oslo, Norway.
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