News Corp (NWSA), Gannett Co., Inc. (GCI): Do Media Companies Get Better by Ditching Print?

The Walt Disney Company (NYSE:DIS) shares trade with a price to earnings ratio of around 20 and are almost always afforded a premium in the market. The yield is about 1.1%. A bottom-line that’s more than tripled over the past decade is a good reason for the positive view of the company. Growth investors should take a look and growth and income types should put The Walt Disney Company (NYSE:DIS) on their wish list. That it isn’t giving up wholesale on print just because it’s fashionable to do so speaks volumes about the company.

Gannett Co., Inc. (NYSE:GCI), however, has managed to succeed despite the struggles of its newspaper business. It had to retrench, slashing its dividend during the 2007 to 2009 recession. And earnings remain well below their pre-recession peak. However, the top and bottom-lines appear to be heading in the right direction again. And the dividend is on the mend, too.

While the company is clearly shifting its business, it might be a good fit for those who see value in a combination of print and video. A value priced PE of 13 and a 3% or so yield should interest income investors seeking a contrarian print play with a video safety valve.

Doubling down on print and its brand name is The New York Times Company (NYSE:NYT). The company is on track to sell off everything but its domestic and foreign Times businesses. The top-line has been in decline since 2005 and the bottom-line has bounced in and out of the red since that time. It’s making a high-risk bet on its brand making the digital shift. While The Walt Disney Company (NYSE:DIS) and Gannett Co., Inc. (NYSE:GCI) are probably better options, The New York Times Company (NYSE:NYT) is a high-risk, pure-print turnaround play with lots of upside if it works out.

So many companies

With so many companies dumping print outright, its worth paying attention to those that aren’t. Disney, Gannett Co., Inc. (NYSE:GCI), and The New York Times Company (NYSE:NYT) all have interesting investment angles to them for the right investors. And, just because a company is labeled “print” doesn’t mean it isn’t moving with the times, which could make News Corp (NASDAQ:NWSA) a buy if investors continue to shun the shares. Now separate Twenty-First Century Fox Inc (NASDAQ:FOXA), meanwhile, is probably too dear right now because of investor enthusiasm.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Walt Disney (NYSE:DIS). The Motley Fool owns shares of Walt Disney. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Do Media Companies Get Better by Ditching Print? originally appeared on Fool.com is written by Reuben Brewer.

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