Are Nine Entertainment or News Corp shares a better buy?

Should you accumulate these media shares at 52-week lows?

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Both Nine Entertainment Co Holdings Ltd (ASX: NEC) and News Corp (ASX: NWS) shares have lost significant ground in the last 12 months. 

But as we turn the page on a new year, do either of these media companies offer upside for investors?

Here's what analysts are saying. 

Nine Entertainment

Nine Entertainment is the company behind the 9Network on free to air TV. 

However it also owns newspaper mastheads like Sydney Morning Herald, The Age, and the Australian Financial Review. 

Additionally, its digital assets include the Stan streaming service. 

Its share price is down about 13.8% in the last 12 months. 

For comparison, the S&P/ASX 200 Communication Services Index (ASX:XTJ) is up roughly 4% in the same period. 

Its stock price may be catching the attention of those looking to scoop up an undervalued company, as its share price sits close to a 5-year low. 

The outlook for Nine Entertainment shares might be risky due to the challenges faced by traditional, advertisement reliant, free-to-air media. 

However it is worth noting that the company's ownership of streaming services Stan and 9Now shows the company is adapting to the new media landscape.

Management said in its 2025 AGM, it expects EBITDA growth in H1 FY26 over H1 FY25, with further cost efficiencies. 

So are Nine Entertainment shares a buy?

It appears that while expectations should be realistic, it has now fallen below fair value. 

The average analyst rating courtesy of TradingView projects a 16% rise in the next 12 months. 

News Corp

While many Australians would be familiar with News Corp's media ownership here in Australia, it also has a significant presence in the US, and the UK.

The company's key newspaper mastheads include The Wall Street Journal, The Times, and the Daily Telegraph and Herald Sun.

News Corp shares have also fallen significantly in the last year. 

The share price has fallen by approximately 7% in the last 12 months and currently sits close to it 52-week low.

This is despite the company reporting modest growth in Q1FY25.

The company reported a 2% increase in revenue, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 5%. 

It seems buying low on News Corp shares could bring upside in the coming year. 

Last November, Jarden adjusted its price target to $51.70 on News Corp shares. 

Additionally, TradingView has an average one year price target of $57.38. 

From yesterday's closing price of $45.22, this indicates an upside between 14% and 27% for News Corp shares. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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