Meredith (NYSE:MDP) and Ergo Science (OTCMKTS:ERGN) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Institutional and Insider Ownership
91.5% of Meredith shares are held by institutional investors. 5.3% of Meredith shares are held by insiders. Comparatively, 28.6% of Ergo Science shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for Meredith and Ergo Science, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Meredith presently has a consensus target price of $29.00, suggesting a potential upside of 135.01%. Given Meredith’s higher possible upside, equities research analysts clearly believe Meredith is more favorable than Ergo Science.
Earnings & Valuation
This table compares Meredith and Ergo Science’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Meredith||$2.85 billion||0.20||-$234.30 million||N/A||N/A|
Ergo Science has lower revenue, but higher earnings than Meredith.
Risk and Volatility
Meredith has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Ergo Science has a beta of -0.29, meaning that its share price is 129% less volatile than the S&P 500.
This table compares Meredith and Ergo Science’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Meredith beats Ergo Science on 7 of the 9 factors compared between the two stocks.
Meredith Corporation operates as a diversified media company in the United States, Europe, and Asia. It operates in two segments, National Media and Local Media. The National Media segment offers national consumer media brands through various media platforms, including print magazines, digital and mobile media, brand licensing activities, database-related activities, affinity marketing, and business-to-business marketing products and services. It publishes media in entertainment, food, lifestyle, parenting, and home categories, such as People, Better Homes & Gardens, InStyle, Allrecipes, Real Simple, Shape, Southern Living, Martha Stewart Living, and other brands, as well as 275 special interest publications under approximately 68 brands. This segment operates approximately 60 Websites, 60 mobile-optimized Websites, and 14 applications. It is also involved in the third-party marketing, consumer database, and other related operations, as well as provision of magazine advertising and circulation, digital and customer relationship marketing, other custom publishing project, and ancillary products and services. In addition, this segment operates The Foundry, a creative content studio, which develops content marketing programs across various platforms comprising native advertising that enable clients to engage new consumers and build long-term relationships with existing customers for a range of industries. The Local Media segment operates approximately 17 television stations that include 7 CBS affiliates, 5 FOX affiliates, 2 MyNetworkTV affiliates, 1 NBC affiliate, 1 ABC affiliate, and 2 independent stations. It also includes 12 Websites, 12 mobile-optimized Websites, and approximately 30 applications focused on news, sports, and weather-related information. In addition, this segment sells geographic and demographic-targeted digital and print advertising programs to third parties. The company was founded in 1902 and is headquartered in Des Moines, Iowa.
About Ergo Science
Ergo Science Corporation, through its wholly owned subsidiary, Nexus Media Communications, operates as a business information provider. It provides information that consists of printed magazines, Web sites, data services and directories, staged exhibitions, conferences, and award ceremony events. The company’s business includes 13 trade names, including Independent Grocer, The Motor Ship, World Travel Guide, and Motor Trader; 150 domain names consisting of columbusguides.com, groweroftheyear.com, harpers-wine.com, motorship.com, motortrader.com, travel-guide.com, and worldfish.com; 50 printed magazines and directories that comprise Motor Trader, Harpers Wines & Spirits, The Grower, Independent Retail News, World Fishing, The World Travel Guide, and Electrical Review; and 30 events, including exhibitions, awards evenings, and conferences, such as the International Wine & Spirit Competition, the Undersea Defence Technology Conference & Exhibition, the Motor Trader Awards, and the Grower of the Year Awards. Ergo Science Corporation serves corporations, government, academic and nonprofit organizations, and individuals primarily in the western Europe and the United States. The company was incorporated in 1990 and is based in North Andover, Massachusetts.
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