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SSP vs. TGNA: Which Local Media Stock Has More Upside Potential?
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Key Takeaways
SSP is expanding through strategic station swaps and improving efficiency with AI and central production.
TEGNA is focusing on leadership changes, newsroom AI and new sales strategies to drive growth.
SSP benefits from stronger investor sentiment, while TGNA faces cautious ad spending and macro concerns.
The E.W. Scripps Company (SSP - Free Report) and TEGNA (TGNA - Free Report) are two major players in the local media space, each with its own strategy to adapt and grow in a rapidly evolving broadcast environment. While both companies operate large station networks and are making digital upgrades, their approach to cost management, expansion and operational execution differs significantly.
As shifts in viewer habits and technology adoption reshape the local broadcasting industry, the key question for investors is: Which stock holds more promise for upside in the coming quarters? Let’s break down the fundamentals and see how SSP and TEGNA stack up.
The Case for SSP Stock
SSP’s local media segment has been building a strong foundation for future growth. The company recently announced a station swap with Gray Media, through which it will acquire KKTV, a CBS affiliate in Colorado Springs. This move will help SSP keep a diverse station portfolio across regions and grow its presence in the Western U.S market. It also adds to the company’s ability to stay financially stable and expand over time.
To improve operations, SSP has been using centralized production and testing AI tools to support local stations. These steps are helping the company manage costs while continuing to deliver news and programming. SSP has also been working on keeping employee costs low, which has been helping them stay within expense targets.
The company believes changes in industry rules may soon allow more station ownership and local market growth. SSP is prepared to take advantage of this by using swaps and selected asset purchases. This would help them grow stronger in the local TV business.
In the first quarter of 2025, SSP’s local media segment recorded $325 million in revenues. Political advertising contributed $3 million, and expenses rose only 1% due to lower employee costs. Segment profit came in at $35 million, supported by cost controls and continued benefit from recent sports programming partnerships.
The Zacks Consensus Estimate for 2025 earnings is pinned at 8 cents per share, which has remained steady over the past 30 days. The estimate indicates a year-over-year decline of 92.59%.
TEGNA’s local media business has been focused on building a stronger foundation by building a new leadership team, upgrading internal systems and launching a new sales performance and incentive structure. It has begun implementing resource sharing across its stations, resulting in more efficient operations and increased output from news teams. Local and regional sales tests in Florida have successfully unlocked new revenue opportunities and improved productivity. At the same time, AI tools are being used in newsrooms to support journalists in identifying and covering impactful local stories.
However, consumer confidence has softened, and some advertisers have taken a cautious approach. TEGNA expects near-term delays in spending, which may affect advertising performance. The company is also navigating changing global trade dynamics, which could influence advertising demand. While distribution renewals are underway, subscriber trends remain a factor to monitor.
TEGNA’s balance sheet raises concerns due to its high debt levels and asset composition. As of March 31, 2025, the company reported total debt of $3.08 billion with a net leverage ratio of 2.8X. While TEGNA is using free cash flow to reduce debt, the elevated leverage limits financial flexibility. Additionally, goodwill and intangible assets make up 73% of the company’s total assets. These factors add pressure to the company’s long-term financial stability.
In the first quarter of 2025, TEGNA’s advertising and marketing services were impacted by macroeconomic conditions and network programming shifts, while distribution revenues remained flat.
The Zacks Consensus Estimate for 2025 earnings is pinned at $1.61 per share, which has remained steady over the past 30 days. The estimate indicates a year-over-year decline of 47.56%.
Valuation-wise, SSP shares are trading relatively cheaper than TGNA, although both have a Value Score of A.
In terms of forward 12-month Price/Sales, SSP shares are trading at 0.12X, below TGNA’s 0.94X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
Year to date, SSP shares have gained 41.2%, while TGNA shares have lost 8.6%. TEGNA is viewed by investors as a struggling local media company facing weak demand, declining cash flows and stagnant growth, with concerns that its low valuation may reflect deeper structural issues. SSP has been showing improving profitability and operational efficiency, with strong earnings momentum and a positive long-term trend in earnings performance, which has positively impacted investors’ sentiments.
SSP and TGNA Stock Performance
Image Source: Zacks Investment Research
Conclusion
SSP offers more upside potential than TEGNA due to its active growth strategy, disciplined cost management and stronger investor sentiment. The company is expanding its footprint through strategic station acquisitions, leveraging AI and centralized production to boost operational efficiency. These forward-looking initiatives have contributed to SSP’s strong year-to-date stock performance. In contrast, TEGNA is dealing with a cautious advertising environment, macroeconomic uncertainty and slower earnings momentum, which may limit its near-term growth potential. With a leaner valuation and better execution, SSP stands better poised to capture future gains in the evolving local media space.
Image: Bigstock
SSP vs. TGNA: Which Local Media Stock Has More Upside Potential?
Key Takeaways
The E.W. Scripps Company (SSP - Free Report) and TEGNA (TGNA - Free Report) are two major players in the local media space, each with its own strategy to adapt and grow in a rapidly evolving broadcast environment. While both companies operate large station networks and are making digital upgrades, their approach to cost management, expansion and operational execution differs significantly.
As shifts in viewer habits and technology adoption reshape the local broadcasting industry, the key question for investors is: Which stock holds more promise for upside in the coming quarters? Let’s break down the fundamentals and see how SSP and TEGNA stack up.
The Case for SSP Stock
SSP’s local media segment has been building a strong foundation for future growth. The company recently announced a station swap with Gray Media, through which it will acquire KKTV, a CBS affiliate in Colorado Springs. This move will help SSP keep a diverse station portfolio across regions and grow its presence in the Western U.S market. It also adds to the company’s ability to stay financially stable and expand over time.
To improve operations, SSP has been using centralized production and testing AI tools to support local stations. These steps are helping the company manage costs while continuing to deliver news and programming. SSP has also been working on keeping employee costs low, which has been helping them stay within expense targets.
The company believes changes in industry rules may soon allow more station ownership and local market growth. SSP is prepared to take advantage of this by using swaps and selected asset purchases. This would help them grow stronger in the local TV business.
In the first quarter of 2025, SSP’s local media segment recorded $325 million in revenues. Political advertising contributed $3 million, and expenses rose only 1% due to lower employee costs. Segment profit came in at $35 million, supported by cost controls and continued benefit from recent sports programming partnerships.
The Zacks Consensus Estimate for 2025 earnings is pinned at 8 cents per share, which has remained steady over the past 30 days. The estimate indicates a year-over-year decline of 92.59%.
E.W. Scripps Company (The) Price and Consensus
E.W. Scripps Company (The) price-consensus-chart | E.W. Scripps Company (The) Quote
The Case for TGNA Stock
TEGNA’s local media business has been focused on building a stronger foundation by building a new leadership team, upgrading internal systems and launching a new sales performance and incentive structure. It has begun implementing resource sharing across its stations, resulting in more efficient operations and increased output from news teams. Local and regional sales tests in Florida have successfully unlocked new revenue opportunities and improved productivity. At the same time, AI tools are being used in newsrooms to support journalists in identifying and covering impactful local stories.
However, consumer confidence has softened, and some advertisers have taken a cautious approach. TEGNA expects near-term delays in spending, which may affect advertising performance. The company is also navigating changing global trade dynamics, which could influence advertising demand. While distribution renewals are underway, subscriber trends remain a factor to monitor.
TEGNA’s balance sheet raises concerns due to its high debt levels and asset composition. As of March 31, 2025, the company reported total debt of $3.08 billion with a net leverage ratio of 2.8X. While TEGNA is using free cash flow to reduce debt, the elevated leverage limits financial flexibility. Additionally, goodwill and intangible assets make up 73% of the company’s total assets. These factors add pressure to the company’s long-term financial stability.
In the first quarter of 2025, TEGNA’s advertising and marketing services were impacted by macroeconomic conditions and network programming shifts, while distribution revenues remained flat.
The Zacks Consensus Estimate for 2025 earnings is pinned at $1.61 per share, which has remained steady over the past 30 days. The estimate indicates a year-over-year decline of 47.56%.
TEGNA Inc. Price and Consensus
TEGNA Inc. price-consensus-chart | TEGNA Inc. Quote
Valuation and Price Performance of SSP and TGNA
Valuation-wise, SSP shares are trading relatively cheaper than TGNA, although both have a Value Score of A.
In terms of forward 12-month Price/Sales, SSP shares are trading at 0.12X, below TGNA’s 0.94X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
Year to date, SSP shares have gained 41.2%, while TGNA shares have lost 8.6%. TEGNA is viewed by investors as a struggling local media company facing weak demand, declining cash flows and stagnant growth, with concerns that its low valuation may reflect deeper structural issues. SSP has been showing improving profitability and operational efficiency, with strong earnings momentum and a positive long-term trend in earnings performance, which has positively impacted investors’ sentiments.
SSP and TGNA Stock Performance
Image Source: Zacks Investment Research
Conclusion
SSP offers more upside potential than TEGNA due to its active growth strategy, disciplined cost management and stronger investor sentiment. The company is expanding its footprint through strategic station acquisitions, leveraging AI and centralized production to boost operational efficiency. These forward-looking initiatives have contributed to SSP’s strong year-to-date stock performance. In contrast, TEGNA is dealing with a cautious advertising environment, macroeconomic uncertainty and slower earnings momentum, which may limit its near-term growth potential. With a leaner valuation and better execution, SSP stands better poised to capture future gains in the evolving local media space.
SSP, with a Zacks Rank #3 (Hold), offers better upside than TGNA, which has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.