Financial Analysis: iHeartMedia (IHRT) vs. the Competition

0

iHeartMedia (NASDAQ:IHRT – Get Rating) is one of 23 publicly traded companies in the “broadcasting stations” industry, but how does it stack up against its competitors? We will compare iHeartMedia to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares the net margins, return on equity and return on assets of iHeartMedia and its competitors.

Net margins Return on equity return on assets
iHeartMedia 0.92% 5.40% 0.52%
iHeartMedia Competitors 6.69% -13.99% 1.04%

Institutional and Insider Ownership

80.2% of iHeartMedia’s shares are held by institutional investors. In comparison, 37.3% of the shares of all “Broadcasting Stations” companies are held by institutional investors. 2.9% of iHeartMedia’s stock is held by insiders of the company. By comparison, 25.6% of the shares of all “broadcasting station” companies are held by insiders of the company. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of iHeartMedia and its competitors.

Gross revenue Net revenue Price/earnings ratio
iHeartMedia $3.56 billion -$159.20 million 37.05
iHeartMedia Competitors $2.41 billion $42.25 million -0.70

iHeartMedia has higher earnings, but lower earnings than its competitors. iHeartMedia trades at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and risk

iHeartMedia has a beta of 1.76, meaning its stock price is 76% more volatile than the S&P 500. Comparatively, iHeartMedia’s competitors have a beta of 1.05, meaning their average stock price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent valuations and price targets for iHeartMedia and its competitors, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
iHeartMedia 1 2 3 0 2.33
iHeartMedia Competitors 138 571 975 26 2.52

iHeartMedia currently has a consensus target price of $20.83, suggesting a potential upside of 144.52%. As a group, the Broadcasting Stations companies have an upside potential of 93.71%. Considering iHeartMedia’s likely higher upside, analysts clearly believe that iHeartMedia is more favorable than its competitors.

Summary

iHeartMedia’s competitors beat iHeartMedia on 7 of the 13 factors compared.

iHeartMedia Company Profile (Get an assessment)

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 broadcast 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 labels, 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.



Get news and reviews for iHeartMedia Daily – Enter your email address below to receive a concise daily summary of breaking news and analyst ratings for iHeartMedia and related companies with MarketBeat.com’s free daily email newsletter.

Share.

Comments are closed.