Spanish Broadcasting System (OTCMKTS:SBSAA) and Townsquare Media (NYSE:TSQ) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
43.6% of Townsquare Media shares are held by institutional investors. 53.5% of Spanish Broadcasting System shares are held by company insiders. Comparatively, 26.7% of Townsquare Media shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Spanish Broadcasting System and Townsquare Media’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spanish Broadcasting System||27.51%||N/A||-1.98%|
This is a breakdown of current ratings and target prices for Spanish Broadcasting System and Townsquare Media, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spanish Broadcasting System||0||0||0||0||N/A|
Townsquare Media has a consensus target price of $10.00, suggesting a potential upside of 143.31%. Given Townsquare Media’s higher possible upside, analysts plainly believe Townsquare Media is more favorable than Spanish Broadcasting System.
Earnings & Valuation
This table compares Spanish Broadcasting System and Townsquare Media’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Spanish Broadcasting System||$134.71 million||0.01||$19.62 million||N/A||N/A|
|Townsquare Media||$507.43 million||0.15||-$10.27 million||$0.74||5.55|
Spanish Broadcasting System has higher earnings, but lower revenue than Townsquare Media.
Townsquare Media pays an annual dividend of $0.30 per share and has a dividend yield of 7.3%. Spanish Broadcasting System does not pay a dividend. Townsquare Media pays out 40.5% of its earnings in the form of a dividend.
Risk and Volatility
Spanish Broadcasting System has a beta of -0.34, suggesting that its stock price is 134% less volatile than the S&P 500. Comparatively, Townsquare Media has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Townsquare Media beats Spanish Broadcasting System on 9 of the 13 factors compared between the two stocks.
About Spanish Broadcasting System
Spanish Broadcasting System, Inc. operates as a Spanish-language media and entertainment company in the United States. It operates in two segments, Radio and Television. The company produces and distributes Spanish-language content, including radio programs, television shows, and music and live entertainment. It owns and operates 17 radio stations in the Los Angeles, New York, Puerto Rico, Chicago, Miami, and San Francisco markets; AIRE radio networks with approximately 250 affiliate radio stations; and 6 television stations under the MegaTV brand, as well as has various MegaTV broadcasting outlets under affiliation or programming agreements. The company also produces live concerts and events; and owns bilingual Websites, including lamusica.com, Mega.tv, and various station Websites that provide content related to Latin music, entertainment, news, and culture, as well as operates the LaMusica mobile app. Its radio station programming formats include Spanish Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40, and Latin Rhythmic; and television programs range from televised radio-branded shows to general entertainment programs, such as music, celebrity, debate, interviews, and personality-based shows. The company was founded in 1983 and is based in Miami, Florida.
About Townsquare Media
Townsquare Media, Inc. operates as a radio, digital media, entertainment, and digital marketing solutions company in small and mid-sized markets. It operates through two segments, Local Marketing Solutions and Entertainment. The Local Marketing Solutions segment provides broadcast and digital solutions to advertisers and businesses through its radio stations, Websites, radio stations’ online streams, and mobile applications. It also offers digital marketing solutions, such as traditional and mobile enabled Website development and hosting services, e-commerce platforms, search engine and online directory optimization services, online reputation management, and social media management services under the Townsquare Interactive brand; and e-commerce products to consumers and advertisers through its proprietary deal and auction platform. As of December 31, 2017, this segment owned and operated 317 radio stations and approximately 325 Websites in 67 markets in the United States. The Entertainment segment creates, promotes, and produces live events, including festivals, fairs, concerts, expositions, and other experiential events. This segment also offer event production services to third parties; and digital advertising services, as well as owns a proprietary ticketing platform. In addition, it owns and operates a portfolio of 9 music and entertainment based national Websites. The company was formerly known as Regent Communications, Inc. and changed its name to Townsquare Media, Inc. in May 2010. Townsquare Media, Inc. was founded in 1996 and is headquartered in Greenwich, Connecticut.
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