Head to Head Analysis: Gray Media (NYSE:GTN.A) & Versant (NASDAQ:VSNT)

Versant (NASDAQ:VSNT) and Gray Media (NYSE:GTN.A) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current ratings for Versant and Gray Media, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Versant	0	7	1	0	2.12
Gray Media	0	0	0	0	0.00

Versant currently has a consensus price target of $43.20, suggesting a potential upside of 5.31%. Given Versant’s stronger consensus rating and higher probable upside, equities analysts plainly believe Versant is more favorable than Gray Media.

Valuation & Earnings

This table compares Versant and Gray Media”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Versant	$6.69 billion	0.85	$930.00 million	$3.48	11.79
Gray Media	$3.15 billion	0.20	-$85.00 million	($0.61)	-9.90

Versant has higher revenue and earnings than Gray Media. Gray Media is trading at a lower price-to-earnings ratio than Versant, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Versant and Gray Media’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Versant	N/A	N/A	N/A
Gray Media	-0.83%	-1.12%	-0.23%

Insider & Institutional Ownership

0.3% of Gray Media shares are owned by institutional investors. 0.1% of Versant shares are owned by company insiders. Comparatively, 13.3% of Gray Media shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Versant pays an annual dividend of $1.50 per share and has a dividend yield of 3.7%. Gray Media pays an annual dividend of $0.32 per share and has a dividend yield of 5.3%. Versant pays out 43.1% of its earnings in the form of a dividend. Gray Media pays out -52.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Gray Media is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Versant beats Gray Media on 11 of the 15 factors compared between the two stocks.

About Versant

Versant Corporation is a provider of data management software. The Company designs, develops, markets and supports database management system products that companies use to solve data management and data integration issues. It also provides related product support, training and consulting services to assist users of the Company’s products in developing and deploying software applications based on its products. The Company’s Versant Object Database product is used primarily by enterprises, which have data management requirements, such as technology providers, telecommunications carriers, Government defense agencies, defense contractors, healthcare companies and companies in the financial services and transportation industries. In addition to its product offerings, to assist users in their development and deployment of applications based on the Versant Object Database, FastObjects and db4o, it offers related professional services.

About Gray Media

Gray Television, Inc., a television broadcast company, owns and operates television stations and digital assets in the United States. As of February 28, 2019, it owned and operated television stations in 91 television markets broadcasting approximately 400 program streams, including approximately 150 channels affiliated with the CBS Network, the NBC Network, the ABC Network, and the FOX Network. The company also broadcasts secondary digital channels affiliated to ABC, CBS, and FOX, as well as channels affiliated with various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, This TV Network, Antenna TV, Telemundo, Cozi, Heroes and Icons, and MOVIES! Network; and local news/weather channels in various markets. In addition, it is also involved in the video program production, marketing, and digital businesses including Raycom Sports, Tupelo-Raycom, and RTM Studios; and production of PowerNation programs and content. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.