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 closed the day down 1.2% versus the S&P 500, which was down 0.9%. Laggards within the Media industry included Radio One ( ROIA), down 9.7%, Gray Television ( GTN.A), down 5.2%, NTN Buzztime ( NTN), down 8.5%, Educational Development ( EDUC), down 14.4% and VisionChina Media ( VISN), down 2.9%.

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

VisionChina Media ( VISN) is one of the companies that pushed the Media industry lower today. VisionChina Media was down $0.27 (2.9%) to $8.92 on average volume. Throughout the day, 10,245 shares of VisionChina Media exchanged hands as compared to its average daily volume of 12,500 shares. The stock ranged in price between $8.92-$9.48 after having opened the day at $9.07 as compared to the previous trading day's close of $9.19.

VisionChina Media Inc., through its subsidiaries, provides advertising services in the People's Republic of China. The company operates out-of-home advertising network using real-time mobile digital television broadcasts to deliver content and advertising on mass transportation systems. VisionChina Media has a market cap of $46.4 million and is part of the services sector. Shares are down 5.5% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates VisionChina Media as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from TheStreet Ratings analysis on VISN go as follows:

  • The gross profit margin for VISIONCHINA MEDIA INC is currently lower than what is desirable, coming in at 28.50%. Regardless of VISN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, VISN's net profit margin of -9.66% significantly underperformed when compared to the industry average.
  • Although VISN's debt-to-equity ratio of 6.28 is very high, it is currently less than that of the industry average. Even though the debt-to-equity ratio is weak, VISN's quick ratio is somewhat strong at 1.26, demonstrating the ability to handle short-term liquidity needs.
  • VISN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 53.49%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, VISIONCHINA MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Media industry average. The net income increased by 22.6% when compared to the same quarter one year prior, going from -$3.70 million to -$2.87 million.

You can view the full analysis from the report here: VisionChina Media Ratings Report

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At the close, NTN Buzztime ( NTN) was down $0.04 (8.5%) to $0.44 on average volume. Throughout the day, 63,825 shares of NTN Buzztime exchanged hands as compared to its average daily volume of 76,200 shares. The stock ranged in price between $0.42-$0.45 after having opened the day at $0.44 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 $42.0 million and is part of the services sector. Shares are up 3.4% year-to-date as of the close of trading on Wednesday.

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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 462.0% when compared to the same quarter one year ago, falling from -$0.23 million to -$1.32 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 -$1.45 million or 300.00% 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 currently very high, coming in at 71.49%. Regardless of NTN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NTN's net profit margin of -21.89% 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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Radio One ( ROIA) was another company that pushed the Media industry lower today. Radio One was down $0.17 (9.7%) to $1.58 on light volume. Throughout the day, 1,882 shares of Radio One exchanged hands as compared to its average daily volume of 3,500 shares. The stock ranged in price between $1.58-$1.65 after having opened the day at $1.65 as compared to the previous trading day's close of $1.75.

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 $3.9 million and is part of the services sector. Shares are up 6.6% year-to-date as of the close of trading on Wednesday.

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, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.

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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.
  • Net operating cash flow has significantly decreased to $5.14 million or 70.74% 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 debt-to-equity ratio is very high at 25.19 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 2.66, which shows the ability to cover short-term cash needs.
  • ROIA's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 70.54%, which is also worse than the performance of the S&P 500 Index. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Media industry average. The net income increased by 0.0% when compared to the same quarter one year prior, going from -$13.22 million to -$13.22 million.

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.

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