3 Stocks Improving Performance Of The Media Industry

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30.89 points (-0.2%) at 17,068 as of Tuesday, Sept. 2, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,485 issues advancing vs. 1,589 declining with 141 unchanged.

The Media industry as a whole closed the day up 0.6% versus the S&P 500, which was down 0.1%. Top gainers within the Media industry included Radio One ( ROIA), up 6.3%, Tiger Media ( IDI), up 21.3%, ChinaNet Online Holdings ( CNET), up 20.2%, Daily Journal ( DJCO), up 2.4% and AirMedia Group ( AMCN), up 1.6%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

ChinaNet Online Holdings ( CNET) is one of the companies that pushed the Media industry higher today. ChinaNet Online Holdings was up $0.17 (20.2%) to $1.01 on heavy volume. Throughout the day, 270,202 shares of ChinaNet Online Holdings exchanged hands as compared to its average daily volume of 128,900 shares. The stock ranged in a price between $0.83-$1.05 after having opened the day at $0.84 as compared to the previous trading day's close of $0.84.

ChinaNet Online Holdings, Inc., through its subsidiaries, provides business-to-businesses Internet services for small and medium enterprises (SMEs) sales networks in the People's Republic of China. ChinaNet Online Holdings has a market cap of $18.8 million and is part of the services sector. Shares are unchanged year-to-date as of the close of trading on Friday. Currently there are no analysts who rate ChinaNet Online Holdings a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates ChinaNet Online Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on CNET go as follows:

  • CHINANET ONLINE HOLDINGS's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINANET ONLINE HOLDINGS swung to a loss, reporting -$0.01 versus $0.13 in the prior year.
  • 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 2326.7% when compared to the same quarter one year ago, falling from $0.03 million to -$0.67 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Media industry and the overall market, CHINANET ONLINE HOLDINGS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINANET ONLINE HOLDINGS is currently lower than what is desirable, coming in at 26.26%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -12.88% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$1.35 million or 213.45% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: ChinaNet Online Holdings Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, Tiger Media ( IDI) was up $0.10 (21.3%) to $0.57 on heavy volume. Throughout the day, 141,946 shares of Tiger Media exchanged hands as compared to its average daily volume of 40,900 shares. The stock ranged in a price between $0.45-$0.61 after having opened the day at $0.45 as compared to the previous trading day's close of $0.47.

Tiger Media has a market cap of $16.7 million and is part of the services sector. Shares are down 68.9% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Radio One ( ROIA) was another company that pushed the Media industry higher today. Radio One was up $0.19 (6.3%) to $3.19 on light volume. Throughout the day, 903 shares of Radio One exchanged hands as compared to its average daily volume of 2,800 shares. The stock ranged in a price between $3.03-$3.19 after having opened the day at $3.12 as compared to the previous trading day's close of $3.00.

Radio One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Reach Media, Internet, and Cable Television. Radio One has a market cap of $6.9 million and is part of the services sector. Shares are down 21.1% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Radio One a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Radio One as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk.

Highlights from TheStreet Ratings analysis on ROIA go as follows:

  • 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, RADIO ONE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 19.00 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.63, which shows the ability to cover short-term cash needs.
  • The gross profit margin for RADIO ONE INC is rather high; currently it is at 68.71%. Regardless of ROIA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ROIA's net profit margin of -9.97% significantly underperformed when compared to the industry average.
  • ROIA, with its decline in revenue, underperformed when compared the industry average of 12.4%. Since the same quarter one year prior, revenues slightly dropped by 9.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • RADIO ONE INC has improved earnings per share by 20.7% 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 year. During the past fiscal year, RADIO ONE INC continued to lose money by earning -$1.30 versus -$1.33 in the prior year.

You can view the full analysis from the report here: Radio One Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.

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