Gannett Co., Inc. (GCI): A Publishing Company with Strong Potential

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Gannett is best known for USA Today, but it also has 82 daily publications, it owns 23 television stations (soon to be 43), and several online properties including PointRoll.com (digital advertising services), ShopLocal (multichannel and advertising services), and Reviewed.com (product reviews).

The New York Times Company (NYSE:NYT) is best known for its New York Times publication, but it also publishes the Boston Globe, the International Herald Tribune, and the Worcester Telegram & Gazette. Its online properties include Boston.com, BostonGlobe.com, and Telegram.com.

The chart below shows several key fundamentals for these 2 companies:

Forward P/E Profit Margin Debt-To-Equity Ratio Dividend Yield
Gannett 9.80 8.57% 0.56 3.30%
The New York Times 27.02 4.76% 1.08 None

Gannett offers better efficiency, debt management, and valuation than The New York Times. Its 3.30% dividend is a big bonus.

Conclusion

Gannett Co., Inc. (NYSE:GCI) had been dealing with inconsistent revenue and earnings on an annual basis, so it decided to make a move. By acquiring Belo Corp (NYSE:BLC), Gannet now shifts its focus from traditional publishing to broadcasting. Increasing involvement in a strengthening industry is often a good move. Gannett looks to be a good long-term investment.

The article A Publishing Company with Strong Potential originally appeared on Fool.com and is written by Dan Moskowitz.

Dan Moskowitz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Dan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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