BOSTON (TheStreet) -- TheStreet's equity model, which ranks stocks based on fundamentals and performance, considers the following five media companies the best in the industry.
: Fourth-quarter profit plummeted 73% to $177 million, or 21 cents a share, as revenue declined 1.6% to $3.4 billion. The operating margin narrowed from 24% to 15%. Thomson holds $1.1 billion of cash and $7.6 billion of debt.
: Thomson-Reuters has advanced 52% over the past year, trailing major U.S. indices. The stock trades at a price-to-book ratio of 1.5, a discount to media peers. The shares offer a 3.2% dividend yield with an excessive payout ratio of 113%.
4. John Wiley & Sons
publishes print and electronic publications.
: Fiscal second-quarter profit increased 15% to $46 million, or 78 cents a share, as revenue grew 3.7% to $448 million. The operating margin expanded from 16% to 19%. John Wiley & Sons holds $61 million of cash and $853 million of debt.
: John Wiley & Sons has increased 43% during the past 12 months, lagging behind U.S. benchmarks. The stock trades at a price-to-projected-earnings ratio of 15, on par with competitors' shares. It is cheap based on sales and cash flow.
3. DreamWorks Animation
makes computer-generated films.
: Fourth-quarter profit dropped 16% to $44 million, or 50 cents a share, as revenue declined 2.8% to $194 million. The operating margin widened from 27% to 28%. The balance sheet contains $231 million of cash and no debt.
: DreamWorks has soared 131% in the past year, beating U.S. indices. The stock trades at a price-to-projected-earnings ratio of 16, on par with peers. Its PEG ratio, a measure of value relative to growth, of 0.5 represents a 55% discount to the industry average. A PEG ratio below 1 implies cheap shares.
2. Interactive Data
( IDC) sells financial-market data and analytics.
: Fourth-quarter profit decreased 18% to $33 million, or 34 cents a share, as revenue remained flat at $194 million. The operating margin contracted from 29% to 24%. Interactive Data holds $306 million of cash and no debt.
: Interactive Data has risen 41% over the past 52 weeks, underperforming benchmarks. The stock trades at a price-to-projected-earnings ratio of 19, a premium to competitors. It is cheap when comparing book value metrics.
1. Daily Journal Corp.
sells profession-oriented newspapers.
: Fiscal first-quarter profit rose 19% to $2.1 million, or $1.51 a share, as revenue inched up 0.5% to $9.9 million. Daily Journal's operating margin extended from 28% to 32%. Its balance sheet stores $64 million of cash and no debt.
: Daily Journal has increased 80% over the past year, outperforming major indices. The stock trades at a price-to-earnings ratio of 11 and a price-to-book ratio of 1.6, a 46% and 56% discount to respective peer-group averages.
-- Reported by Jake Lynch in Boston.