See how these two media shares stack up in opposition to one another.
Newsmax (NMAX -1.68%) and The New York Occasions Firm (NYT -1.05%) characterize two reverse ends of the political spectrum within the media, they usually’re additionally two of the few pure-play information media shares accessible for buyers.
Whereas some may consider the information media as a dying business, the response to Newsmax’s preliminary public providing (IPO), which pale quickly after, and the success of The New York Occasions’ digital transformation, reveals in any other case.
Let’s take a more in-depth at these two shares to find out which is the higher purchase in the present day.
Picture supply: Getty Photos.
Enterprise mannequin: Newsmax vs. New York Occasions
NewsMax is a diversified media firm, finest identified for its Newsmax linear cable channel.
Immediately, greater than 40 million Individuals watch, learn, and take heed to Newsmax. Newsmax has grown over time to change into the fourth-largest with 21 million common viewers.
The corporate’s broadcasting property embody two streaming channels, Newsmax and World at Conflict, and Newsmax2, a free streaming channel. Moreover, Newsmax Radio presents a syndicated radio and several other podcasts. Newsmax additionally has a digital arm that features internet advertising and specialised subscription newsletters, and it has a publishing subsidiary, Humanix Publishing, which has revealed round 100 titles. Moreover, it owns Medix Well being, which sells 22 nutraceutical merchandise, and Crown Atlantic Insurance coverage, an insurance coverage company that sells annuities, life insurance coverage, and different insurance coverage choices.
That assortment of companies makes Newsmax totally different from different media corporations. Whereas the overwhelming majority of its income comes from cable subscription charges and advert income, the corporate additionally makes cash from promoting vitamin and insurance coverage merchandise, in addition to books that it might probably promote on its programming.
The New York Occasions could also be the most effective instance of a conventional newspaper that transitioned to the digital period. Whereas the transition hasn’t all the time been easy, the Occasions now makes the overwhelming majority of its income from digital subscriptions and advert income, although digital adverts haven’t been as profitable as print adverts.
After promoting property like The Boston Globe, the Occasions has sought so as to add complementary information merchandise to the core New York Occasions newspaper, together with sports activities via The Athletic, video games akin to Wordle, Cooking, and Wirecutter, a product assessment website. Total, the Occasions continues to set the information agenda within the nation, giving it outsize affect over the media panorama, regardless of the comparatively small dimension of the corporate, which at present has a market cap of $9.5 billion, even because it trades at an all-time excessive.
Financials: Newsmax vs. The New York Occasions
Newsmax continues to be small. Within the second quarter, the corporate reported $46.4 million in income, up 18.4% from the quarter a 12 months in the past. Broadcast income development was significantly spectacular at 28.5% to $38 million.
Nonetheless, the corporate reported a loss on an adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) foundation of $3.8 million, down from a revenue of $1.9 million.
The New York Occasions additionally delivered strong development within the second quarter with income up 9.7% to $685.9 million, whereas complete subscribers have been up 10% to 11.9 million. Its adjusted working revenue rose from $104.7 million to $133.8 million, giving it an working revenue margin of close to 20%. Adjusted earnings per share was up $0.45 to $0.58.
Valuation: Newsmax vs. The New York Occasions
Newsmax at present has a market cap of $1.15 billion. It’s not worthwhile, and analysts count on it to proceed to report a loss at the very least via 2026. Newsmax at present trades at a price-to-sales ratio of 9.
The New York Occasions, alternatively, is solidly worthwhile and trades at a decrease price-to-sales ratio of three.6. On a price-to-earnings ratio, the inventory trades at a a number of of 30. The New York Occasions additionally presents a dividend yield of 1.2%.
What is the higher purchase?
Whereas Newsmax attracted some consideration when it went public earlier this 12 months, it is nonetheless shedding cash and is dearer on a P/S foundation than The New York Occasions.
The Occasions, in the meantime, is delivering strong income development and robust and increasing revenue margins. It is the higher purchase of the 2.
