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ZD vs NWSA
Revenue, margins, valuation, and 5-year total return — side by side.
Entertainment
ZD vs NWSA — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Advertising Agencies | Entertainment |
| Market Cap | $1.64B | $15.27B |
| Revenue (TTM) | $1.45B | $9.03B |
| Net Income (TTM) | $47M | $1.69B |
| Gross Margin | 77.8% | 34.9% |
| Operating Margin | 13.2% | 7.8% |
| Forward P/E | 7.1x | 25.8x |
| Total Debt | $892M | $2.94B |
| Cash & Equiv. | $607M | $2.40B |
ZD vs NWSA — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Ziff Davis, Inc. (ZD) | 100 | 63.6 | -36.4% |
| News Corporation (NWSA) | 100 | 220.7 | +120.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ZD vs NWSA
Each card shows where this stock fits in a portfolio — not just who wins on paper.
ZD is the clearest fit if your priority is growth exposure.
- Rev growth 3.5%, EPS growth -19.0%, 3Y rev CAGR 1.4%
- 3.5% revenue growth vs NWSA's 2.4%
- Lower P/E (7.1x vs 25.8x)
NWSA carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 1 yrs, beta 0.60, yield 1.2%
- 136.5% 10Y total return vs ZD's -13.7%
- Lower volatility, beta 0.60, Low D/E 31.3%, current ratio 1.84x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 3.5% revenue growth vs NWSA's 2.4% | |
| Value | Lower P/E (7.1x vs 25.8x) | |
| Quality / Margins | 18.7% margin vs ZD's 3.3% | |
| Stability / Safety | Beta 0.60 vs ZD's 1.19, lower leverage | |
| Dividends | 1.2% yield; 1-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | +36.9% vs NWSA's -3.3% | |
| Efficiency (ROA) | 10.9% ROA vs ZD's 1.3%, ROIC 6.8% vs 7.2% |
ZD vs NWSA — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
ZD vs NWSA — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
Evenly matched — ZD and NWSA each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
NWSA is the larger business by revenue, generating $9.0B annually — 6.2x ZD's $1.5B. NWSA is the more profitable business, keeping 18.7% of every revenue dollar as net income compared to ZD's 3.3%. On growth, NWSA holds the edge at +8.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.5B | $9.0B |
| EBITDAEarnings before interest/tax | $420M | $469M |
| Net IncomeAfter-tax profit | $47M | $1.7B |
| Free Cash FlowCash after capex | $288M | $572M |
| Gross MarginGross profit ÷ Revenue | +77.8% | +34.9% |
| Operating MarginEBIT ÷ Revenue | +13.2% | +7.8% |
| Net MarginNet income ÷ Revenue | +3.3% | +18.7% |
| FCF MarginFCF ÷ Revenue | +19.8% | +6.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | -1.5% | +8.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -99.3% | +6.1% |
Valuation Metrics
ZD leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 13.1x trailing earnings, NWSA trades at a 65% valuation discount to ZD's 37.7x P/E. On an enterprise value basis, ZD's 4.4x EV/EBITDA is more attractive than NWSA's 11.2x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $1.6B | $15.3B |
| Enterprise ValueMkt cap + debt − cash | $1.9B | $15.8B |
| Trailing P/EPrice ÷ TTM EPS | 37.66x | 13.06x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.10x | 25.75x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 4.45x | 11.17x |
| Price / SalesMarket cap ÷ Revenue | 1.13x | 1.81x |
| Price / BookPrice ÷ Book value/share | 1.02x | 1.64x |
| Price / FCFMarket cap ÷ FCF | 5.69x | 21.00x |
Profitability & Efficiency
NWSA leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
NWSA delivers a 18.1% return on equity — every $100 of shareholder capital generates $18 in annual profit, vs $3 for ZD. NWSA carries lower financial leverage with a 0.31x debt-to-equity ratio, signaling a more conservative balance sheet compared to ZD's 0.51x. On the Piotroski fundamental quality scale (0–9), NWSA scores 7/9 vs ZD's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +2.6% | +18.1% |
| ROA (TTM)Return on assets | +1.3% | +10.9% |
| ROICReturn on invested capital | +7.2% | +6.8% |
| ROCEReturn on capital employed | +7.6% | +7.2% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.51x | 0.31x |
| Net DebtTotal debt minus cash | $285M | $537M |
| Cash & Equiv.Liquid assets | $607M | $2.4B |
| Total DebtShort + long-term debt | $892M | $2.9B |
| Interest CoverageEBIT ÷ Interest expense | 2.19x | 127.43x |
Total Returns (Dividends Reinvested)
NWSA leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in NWSA five years ago would be worth $10,219 today (with dividends reinvested), compared to $4,079 for ZD. Over the past 12 months, ZD leads with a +36.9% total return vs NWSA's -3.3%. The 3-year compound annual growth rate (CAGR) favors NWSA at 17.3% vs ZD's -12.9% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +27.4% | +3.6% |
| 1-Year ReturnPast 12 months | +36.9% | -3.3% |
| 3-Year ReturnCumulative with dividends | -33.9% | +61.3% |
| 5-Year ReturnCumulative with dividends | -59.2% | +2.2% |
| 10-Year ReturnCumulative with dividends | -13.7% | +136.5% |
| CAGR (3Y)Annualised 3-year return | -12.9% | +17.3% |
Risk & Volatility
Evenly matched — ZD and NWSA each lead in 1 of 2 comparable metrics.
Risk & Volatility
NWSA is the less volatile stock with a 0.60 beta — it tends to amplify market swings less than ZD's 1.19 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.19x | 0.60x |
| 52-Week HighHighest price in past year | $50.55 | $31.61 |
| 52-Week LowLowest price in past year | $22.45 | $22.20 |
| % of 52W HighCurrent price vs 52-week peak | +85.7% | +85.5% |
| RSI (14)Momentum oscillator 0–100 | 43.7 | 58.3 |
| Avg Volume (50D)Average daily shares traded | 1.0M | 4.1M |
Analyst Outlook
NWSA leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates ZD as "Buy" and NWSA as "Buy". Consensus price targets imply 19.8% upside for NWSA (target: $32) vs -0.7% for ZD (target: $43). NWSA is the only dividend payer here at 1.20% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $43.00 | $32.40 |
| # AnalystsCovering analysts | 13 | 28 |
| Dividend YieldAnnual dividend ÷ price | — | +1.2% |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | — | $0.32 |
| Buyback YieldShare repurchases ÷ mkt cap | +10.6% | +1.0% |
NWSA leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). ZD leads in 1 (Valuation Metrics). 2 tied.
ZD vs NWSA: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ZD or NWSA a better buy right now?
For growth investors, Ziff Davis, Inc.
(ZD) is the stronger pick with 3. 5% revenue growth year-over-year, versus 2. 4% for News Corporation (NWSA). News Corporation (NWSA) offers the better valuation at 13. 1x trailing P/E (25. 8x forward), making it the more compelling value choice. Analysts rate Ziff Davis, Inc. (ZD) a "Buy" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ZD or NWSA?
On trailing P/E, News Corporation (NWSA) is the cheapest at 13.
1x versus Ziff Davis, Inc. at 37. 7x. On forward P/E, Ziff Davis, Inc. is actually cheaper at 7. 1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — ZD or NWSA?
Over the past 5 years, News Corporation (NWSA) delivered a total return of +2.
2%, compared to -59. 2% for Ziff Davis, Inc. (ZD). Over 10 years, the gap is even starker: NWSA returned +136. 5% versus ZD's -13. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ZD or NWSA?
By beta (market sensitivity over 5 years), News Corporation (NWSA) is the lower-risk stock at 0.
60β versus Ziff Davis, Inc. 's 1. 19β — meaning ZD is approximately 99% more volatile than NWSA relative to the S&P 500. On balance sheet safety, News Corporation (NWSA) carries a lower debt/equity ratio of 31% versus 51% for Ziff Davis, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ZD or NWSA?
By revenue growth (latest reported year), Ziff Davis, Inc.
(ZD) is pulling ahead at 3. 5% versus 2. 4% for News Corporation (NWSA). On earnings-per-share growth, the picture is similar: News Corporation grew EPS 350. 0% year-over-year, compared to -19. 0% for Ziff Davis, Inc.. Over a 3-year CAGR, ZD leads at 1. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ZD or NWSA?
News Corporation (NWSA) is the more profitable company, earning 14.
0% net margin versus 3. 3% for Ziff Davis, Inc. — meaning it keeps 14. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ZD leads at 14. 1% versus 11. 3% for NWSA. At the gross margin level — before operating expenses — NWSA leads at 100. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is ZD or NWSA more undervalued right now?
On forward earnings alone, Ziff Davis, Inc.
(ZD) trades at 7. 1x forward P/E versus 25. 8x for News Corporation — 18. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NWSA: 19. 8% to $32. 40.
08Which pays a better dividend — ZD or NWSA?
In this comparison, NWSA (1.
2% yield) pays a dividend. ZD does not pay a meaningful dividend and should not be held primarily for income.
09Is ZD or NWSA better for a retirement portfolio?
For long-horizon retirement investors, News Corporation (NWSA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
60), 1. 2% yield, +136. 5% 10Y return). Both have compounded well over 10 years (NWSA: +136. 5%, ZD: -13. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between ZD and NWSA?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: ZD is a small-cap quality compounder stock; NWSA is a mid-cap deep-value stock. NWSA pays a dividend while ZD does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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