3 Stocks Pushing The Media Industry Lower

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Media industry as a whole was unchanged today versus the S&P 500, which was up 0.5%. Laggards within the Media industry included Tiger Media ( IDI), down 1.6%, NTN Buzztime ( NTN), down 8.3%, Discovery Communications ( DISCB), down 2.8%, ChinaNet Online Holdings ( CNET), down 8.3% and Daily Journal ( DJCO), down 4.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Discovery Communications ( DISCB) is one of the companies that pushed the Media industry lower today. Discovery Communications was down $1.30 (2.8%) to $44.82 on light volume. Throughout the day, 300 shares of Discovery Communications exchanged hands as compared to its average daily volume of 900 shares. The stock ranged in price between $44.82-$45.43 after having opened the day at $45.43 as compared to the previous trading day's close of $46.12.

Discovery Communications, Inc. operates as a media company worldwide. The company operates in three segments: U.S. Networks, International Networks, and Education. Discovery Communications has a market cap of $301.0 million and is part of the services sector. Shares are down 48.6% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Discovery Communications a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Discovery Communications as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on DISCB go as follows:

  • DISCOVERY COMMUNICATIONS INC has improved earnings per share by 32.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISCOVERY COMMUNICATIONS INC increased its bottom line by earning $2.97 versus $2.52 in the prior year. This year, the market expects an improvement in earnings ($7.31 versus $2.97).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Media industry average. The net income increased by 26.3% when compared to the same quarter one year prior, rising from $300.00 million to $379.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 9.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, DISCOVERY COMMUNICATIONS INC's return on equity exceeds that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Discovery Communications Ratings Report

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At the close, NTN Buzztime ( NTN) was down $0.04 (8.3%) to $0.44 on light volume. Throughout the day, 50,057 shares of NTN Buzztime exchanged hands as compared to its average daily volume of 72,600 shares. The stock ranged in price between $0.41-$0.49 after having opened the day at $0.47 as compared to the previous trading day's close of $0.48.

NTN Buzztime, Inc. provides an entertainment and marketing services platform for hospitality venues that offer games, events, and entertainment experiences in the United States and Canada. NTN Buzztime has a market cap of $43.1 million and is part of the services sector. Shares are down 23.8% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates NTN Buzztime as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on NTN go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 1261.6% when compared to the same quarter one year ago, falling from -$0.10 million to -$1.35 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, NTN BUZZTIME INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.79 million or 1092.22% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for NTN BUZZTIME INC is rather high; currently it is at 67.02%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, NTN's net profit margin of -19.61% significantly underperformed when compared to the industry average.
  • NTN BUZZTIME INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, NTN BUZZTIME INC continued to lose money by earning -$0.01 versus -$0.02 in the prior year.

You can view the full analysis from the report here: NTN Buzztime Ratings Report

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Tiger Media ( IDI) was another company that pushed the Media industry lower today. Tiger Media was down $0.01 (1.6%) to $0.62 on light volume. Throughout the day, 20,940 shares of Tiger Media exchanged hands as compared to its average daily volume of 39,600 shares. The stock ranged in price between $0.61-$0.63 after having opened the day at $0.61 as compared to the previous trading day's close of $0.63.

Tiger Media has a market cap of $21.4 million and is part of the services sector. Shares are down 58.3% year-to-date as of the close of trading on Friday.

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