GTN (OTCMKTS:GTNLF) & National CineMedia (NASDAQ:NCMI) Critical Analysis

National CineMedia (NASDAQ:NCMI) and GTN (OTCMKTS:GTNLF) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Profitability

This table compares National CineMedia and GTN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National CineMedia	78.04%	3.50%	2.63%
GTN	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for National CineMedia and GTN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National CineMedia	0	1	3	0	2.75
GTN	0	0	0	0	N/A

National CineMedia currently has a consensus target price of $7.50, suggesting a potential upside of 9.17%. Given National CineMedia’s higher probable upside, analysts clearly believe National CineMedia is more favorable than GTN.

Insider & Institutional Ownership

69.5% of National CineMedia shares are owned by institutional investors. 0.3% of National CineMedia shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares National CineMedia and GTN”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National CineMedia	$207.60 million	3.20	$705.20 million	$34.07	0.20
GTN	N/A	N/A	N/A	N/A	N/A

National CineMedia has higher revenue and earnings than GTN.

Summary

National CineMedia beats GTN on 8 of the 8 factors compared between the two stocks.

About National CineMedia

National CineMedia, Inc., through its subsidiary, National CineMedia, LLC, operates cinema advertising network in North America. It engages in the sale of advertising to national, regional, and local businesses in Noovie, a cinema advertising and entertainment show seen on movie screens; and sells advertising on its Lobby Entertainment Network, a series of strategically-placed screens located in movie theater lobbies, as well as other forms of advertising and promotions in theatre lobbies. The company also sells online and mobile advertising through its Noovie Audience Accelerator product across a suite of Noovie digital properties, such as Name That Movie and Noovie Trivia app to reach entertainment audiences beyond the theater. It offers its services to third-party theater circuits under long-term network affiliate agreements. The company was incorporated in 2006 and is headquartered in Centennial, Colorado.

About GTN

GTN Limited, together with its subsidiaries, operates broadcast media advertising platform that supply traffic information reports to radio stations in Australia, Canada, the United Kingdom, and Brazil. It offers information reports, such as traffic and news through advertising spots on television and radio networks directly to advertisers, as well as through advertising agencies. GTN Limited was founded in 1997 and is headquartered in North Sydney, Australia.