Spanish Broadcasting System (OTCMKTS:SBSAA) and Entercom Communications (NYSE:ETM) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Analyst Ratings
This is a summary of recent recommendations for Spanish Broadcasting System and Entercom Communications, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Spanish Broadcasting System | 0 | 0 | 0 | 0 | N/A |
Entercom Communications | 0 | 2 | 2 | 0 | 2.50 |
Entercom Communications has a consensus target price of $3.8333, suggesting a potential downside of 24.24%. Given Entercom Communications' higher possible upside, analysts plainly believe Entercom Communications is more favorable than Spanish Broadcasting System.
Profitability
This table compares Spanish Broadcasting System and Entercom Communications' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Spanish Broadcasting System | -14.70% | N/A | -2.42% |
Entercom Communications | -49.10% | -3.14% | -0.73% |
Risk & Volatility
Spanish Broadcasting System has a beta of -0.51, meaning that its stock price is 151% less volatile than the S&P 500. Comparatively, Entercom Communications has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.
Earnings and Valuation
This table compares Spanish Broadcasting System and Entercom Communications' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Spanish Broadcasting System | $156.66 million | 0.10 | $-930,000.00 | N/A | N/A |
Entercom Communications | $1.49 billion | 0.47 | $-420,210,000.00 | $1.00 | 5.06 |
Spanish Broadcasting System has higher earnings, but lower revenue than Entercom Communications.
Institutional and Insider Ownership
46.4% of Entercom Communications shares are held by institutional investors. 48.3% of Spanish Broadcasting System shares are held by insiders. Comparatively, 16.4% of Entercom Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Entercom Communications beats Spanish Broadcasting System on 7 of the 12 factors compared between the two stocks.