New York Times (NYSE:NYT – Get Free Report) and Educational Development (NASDAQ:EDUC – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Valuation & Earnings
This table compares New York Times and Educational Development”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New York Times | $2.82 billion | 3.82 | $343.98 million | $2.40 | 27.88 |
| Educational Development | $22.91 million | 0.49 | $2.33 million | $0.23 | 5.70 |
Insider & Institutional Ownership
95.4% of New York Times shares are owned by institutional investors. Comparatively, 19.6% of Educational Development shares are owned by institutional investors. 1.9% of New York Times shares are owned by company insiders. Comparatively, 11.9% of Educational Development shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and price targets for New York Times and Educational Development, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New York Times | 0 | 6 | 4 | 1 | 2.55 |
| Educational Development | 1 | 0 | 0 | 0 | 1.00 |
New York Times currently has a consensus price target of $82.33, suggesting a potential upside of 23.06%. Given New York Times’ stronger consensus rating and higher probable upside, equities analysts plainly believe New York Times is more favorable than Educational Development.
Profitability
This table compares New York Times and Educational Development’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New York Times | 13.19% | 22.64% | 15.58% |
| Educational Development | 9.75% | -18.23% | -12.73% |
Risk & Volatility
New York Times has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Educational Development has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Summary
New York Times beats Educational Development on 13 of the 15 factors compared between the two stocks.
About New York Times
The New York Times Company, together with its subsidiaries, creates, collects, and distributes news and information worldwide. The company operates through two segments, The New York Times Group and The Athletic. It offers The New York Times (The Times) through company’s mobile application, website, printed newspaper, and associated content, such as podcast. The company also offers The Athletic, a sports media product; Cooking, a recipe product; Games, a puzzle games product; and Audio, an audio product. In addition, it offers a portfolio of advertising products and services to advertisers, such as luxury goods, technology, and financial companies, to promote products, services or brands on digital platforms in the form of display ads, audio and video, in print in the form of column-inch ads, and at live events; and Wirecutter, a product review and recommendation product. Further, the company licenses content to digital aggregators in the business, professional, academic and library markets, and third-party digital platforms; articles, graphics, and photographs, including newspapers, magazines, and websites; and for use in television, films, and books, as well as provide rights to reprint articles, and create and sell new digests. Additionally, it engages in commercial printing and distribution for third parties; and operates the NYTimes.com website. The company was founded in 1851 and is headquartered in New York, New York.
About Educational Development
Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.
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