USA Today (NYSE:TDAY – Get Free Report) and Harte Hanks (NASDAQ:HHS – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.
Volatility and Risk
USA Today has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Harte Hanks has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500.
Profitability
This table compares USA Today and Harte Hanks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| USA Today | -1.81% | -21.13% | -1.85% |
| Harte Hanks | -3.70% | -30.14% | -6.30% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| USA Today | $2.30 billion | 0.47 | $1.75 million | ($0.30) | -24.70 |
| Harte Hanks | $159.57 million | 0.21 | -$810,000.00 | ($0.76) | -5.97 |
USA Today has higher revenue and earnings than Harte Hanks. USA Today is trading at a lower price-to-earnings ratio than Harte Hanks, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
76.7% of USA Today shares are held by institutional investors. Comparatively, 33.8% of Harte Hanks shares are held by institutional investors. 4.4% of USA Today shares are held by insiders. Comparatively, 9.6% of Harte Hanks shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and recommmendations for USA Today and Harte Hanks, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USA Today | 1 | 1 | 2 | 0 | 2.25 |
| Harte Hanks | 1 | 0 | 0 | 0 | 1.00 |
USA Today presently has a consensus target price of $9.03, indicating a potential upside of 21.79%. Given USA Today’s stronger consensus rating and higher possible upside, research analysts plainly believe USA Today is more favorable than Harte Hanks.
Summary
USA Today beats Harte Hanks on 12 of the 14 factors compared between the two stocks.
About USA Today
Gannett Co Inc. invests in, owns, and operates local media assets in the United States. The company’s principal products include 125 daily newspapers with total paid circulation of approximately 1.4 million; 314 weekly newspapers with total paid circulation of approximately 315,000 and total free circulation of approximately 1.9 million; 124 shoppers with total circulation of approximately 3.0 million; and 538 locally-focused Websites, including Internet and mobile devices with approximately 224 million page views per month. Its principal products also comprise 2 yellow page directories with a total distribution of approximately 230,000 that cover a population of approximately 411,000 people; 68 business publications; and Propel digital marketing and business services. In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it provides print and online products that offer local market news and information on various topics comprising local news and politics, community and regional events, youth sports, opinion and editorial pages, local schools, obituaries, weddings, and police reports, as well as print and digital advertising products, as well as commercial printing and regional business-oriented publications services. The company reaches approximately 20 million people per week; and serves approximately 220,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York.
About Harte Hanks
Harte-Hanks, Inc. engages in the provision of marketing solutions. It specializes in consulting, data analytics, creative services, digital and social media, marketing strategy, marketing technology, and other related services. It supports a range of customers in the field of technology, travel and leisure, entertainment, pharmaceuticals, automotive, finance, and retail. The company was founded in 1923 and is headquartered in San Antonio, TX.
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