Contrast iHeartMedia (NASDAQ:IHRT) and Saga Communications (NASDAQ:SGA)

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iHeartMedia (NASDAQ:IHRT – Get Rating) and Saga Communications (NASDAQ:SGA – Get Rating) are both small-cap consumer discretionary companies, but which is the best investment? We’ll compare the two companies based on their dividend strength, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Profitability

This table compares the net margins, return on equity and return on assets of iHeartMedia and Saga Communications.

Net margins Return on equity return on assets
iHeartMedia 0.92% 5.40% 0.52%
Communications Saga 10.45% 5.90% 4.64%

Institutional and insider ownership

80.2% of iHeartMedia’s shares are held by institutional investors. By comparison, 65.6% of Saga Communications shares are held by institutional investors. 2.9% of iHeartMedia shares are held by insiders. By comparison, 17.8% of Saga Communications shares are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

iHeartMedia has a beta of 1.76, suggesting its stock price is 76% more volatile than the S&P 500. Comparatively, Saga Communications has a beta of 0.68, suggesting its stock price is 32% less volatile than the S&P 500.

Analyst Notes

This is a breakdown of recent ratings and target prices for iHeartMedia and Saga Communications, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
iHeartMedia 1 1 3 0 2.40
Communications Saga 0 0 0 0 N / A

iHeartMedia currently has a consensus target price of $26.40, suggesting a potential upside of 211.32%. Considering iHeartMedia’s likely higher upside, research analysts clearly believe that iHeartMedia is more favorable than Saga Communications.

Benefits and evaluation

This chart compares the revenue, earnings per share, and valuation of iHeartMedia and Saga Communications.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
iHeartMedia $3.56 billion 0.34 -$159.20 million $0.23 36.87
Communications Saga $108.34 million 1.33 $11.16 million $1.92 12:44 p.m.

Saga Communications has lower revenue, but higher revenue than iHeartMedia. Saga Communications trades at a lower price-to-earnings ratio than iHeartMedia, indicating that it is currently the more affordable of the two stocks.

Summary

Saga Communications beats iHeartMedia on 7 out of 13 factors compared between the two stocks.

About iHeartMedia (Get a rating)

iHeartMedia, Inc. operates as a worldwide media and entertainment company. It operates through three segments: Multiplatform Group, Digital Audio Group and Audio and Multimedia Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes or represents approximately 120 syndicated radio programs and services to approximately 6,400 affiliated radio stations. It also provides real-time information on traffic flows and incidents, as well as weather, sports and news updates via approximately 2,100 radio stations and 170 affiliated television channels, as well as Internet and mobiles. As of December 31, 2021, this segment held 863 radio stations, including 249 AM radio stations and 614 FM radio stations. The Digital Audio Group segment provides podcasts, digital sites, newsletters, digital services and programs; and iHeartRadio, a mobile app and web service for radio stations, digital-only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment is engaged in media representation business. This segment also provides cloud and on-premises broadcasting software, such as radio and television automation, music programming, newsroom automation, ad sales management, rework solutions after disaster; and real-time audio recognition technology to approximately 10,000 radio and television stations, cable channels, record companies, advertisers and agencies, as well as media streaming and search services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. iHeartMedia, Inc. is headquartered in San Antonio, Texas.

About Saga Communications (Get a rating)

Saga Communications, Inc., a broadcast company, acquires, develops and operates broadcast properties in the United States. The Company’s radio stations use a variety of programming formats, including Classic Hits, Adult Hits, Top 40, Country, Country Legends, Mainstream/Hot/Soft Adult Contemporary, Pure Oldies, classic rock and news/talk. As of February 28, 2022, it owned seventy-nine FM radio stations, thirty-four AM radio stations, and seventy-nine subway signals serving twenty-seven markets. The company was founded in 1986 and is based in Grosse Pointe Farms, Michigan.



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