Meredith (NYSE: MDP) and Wolters Kluwer (OTCMKTS:WTKWY) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.
Earnings & Valuation
This table compares Meredith and Wolters Kluwer’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Meredith||$1.71 billion||1.40||$188.92 million||$6.04||8.86|
|Wolters Kluwer||$5.00 billion||3.05||$756.85 million||N/A||N/A|
Volatility & Risk
Meredith has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Wolters Kluwer has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Insider & Institutional Ownership
95.1% of Meredith shares are held by institutional investors. Comparatively, 0.1% of Wolters Kluwer shares are held by institutional investors. 4.0% of Meredith shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Meredith and Wolters Kluwer’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for Meredith and Wolters Kluwer, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Meredith presently has a consensus target price of $74.50, suggesting a potential upside of 39.25%. Given Meredith’s higher probable upside, analysts plainly believe Meredith is more favorable than Wolters Kluwer.
Meredith pays an annual dividend of $2.18 per share and has a dividend yield of 4.1%. Wolters Kluwer pays an annual dividend of $0.77 per share and has a dividend yield of 1.5%. Meredith pays out 36.1% of its earnings in the form of a dividend. Meredith has raised its dividend for 5 consecutive years. Meredith is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Meredith beats Wolters Kluwer on 10 of the 14 factors compared between the two stocks.
Meredith Corporation is a diversified media company. The Company is focused primarily on the home and family marketplace. The Company operates through two segments: Local Media and National Media. As of June 30, 2016, the Company’s Local Media segment includes 16 owned television stations, one managed television station and related digital and mobile media operations. Its National Media segment includes magazine publishing, custom content and customer relationship marketing, digital and mobile media, brand licensing, database-related activities, and other related operations. Its National Media segment focuses on the food, home, parenthood, and health markets and is a publisher of magazines serving women. As of June 30, 2016, the Company’s owned television stations consist of seven CBS affiliates, five FOX affiliates, two MyNetworkTV affiliates, one NBC affiliate, one ABC affiliate and one independent station. The National Media segment also focuses on run-of-press display advertising.
About Wolters Kluwer
Wolters Kluwer N.V. provides information, software and services to doctors, nurses, accountants, lawyers, and audit, compliance and regulatory professionals. The Company’s segments include Health; Tax & Accounting; Governance, Risk & Compliance, Legal & Regulatory and Corporate. Its geographical segments include the Netherlands, Europe, North America and the Rest of the World. Its Health solutions help facilitate evidence-based decision-making in clinical, nursing, and pharmaceutical settings. The Tax & Accounting segment offers solutions in compliance, collaboration, internal and external audit management, and firm management. The Governance, Risk & Compliance segment offers solutions ranging from legal compliance and enterprise-wide legal management, to address regulatory and industry requirements through workflow, analytics, and reporting solutions and services in financial markets. The Legal & Regulatory segment provides information, analytics, software and workflow solutions.
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