Better Media Stock: Newsmax vs. The New York Times

Group 1: Company Overview - Newsmax is a relatively new player in the media sector, having entered the stock market in March 2025, while The New York Times Company has a long history dating back to 1851 and has been publicly traded for 56 years [1][2] - Newsmax reported second-quarter sales of $46.4 million, reflecting an 18.4% year-over-year growth, and reached 26 million cable news viewers [3] - The New York Times generated $685.9 million in revenue, a 9.7% increase, with 51% of this revenue coming from digital-only subscriptions [6] Group 2: Financial Performance - Newsmax has a cash balance of $198 million and no long-term debt, but it consistently reports negative bottom-line profits [4][5] - The New York Times has a cash balance of $951.5 million and also carries no long-term debt, with a net income of $82.9 million, a 26.6% increase year-over-year [6][7] - Return on equity for Newsmax is currently negative, while The New York Times boasts a return on equity of 17.1% [5][7] Group 3: Stock Performance - Newsmax shares are trading 94% below their all-time high, with a three-month return of negative 29.7% [9] - The New York Times stock has provided a total return of 7.8% over the last three months and 92.5% over the last three years [11] - Valuation metrics show Newsmax trading at 18.5 times its book value and 10 times its net cash balance, while The New York Times trades at 30.7 times trailing earnings and 21.3 times free cash flow [10][11] Group 4: Business Models - Newsmax relies heavily on advertising sales, making its revenue stream more volatile, while The New York Times has a more stable business model with a significant portion of revenue coming from subscriptions [12] - The New York Times is characterized as a modestly priced value stock, whereas Newsmax is viewed as a more speculative investment [13]