Entravision Communication (NYSE: EVC) and Media General (NYSE:MEG) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitabiliy, institutional ownership and earnings.

Dividends

Entravision Communication pays an annual dividend of $0.13 per share and has a dividend yield of 2.3%. Media General does not pay a dividend. Entravision Communication pays out 65.0% of its earnings in the form of a dividend. Media General has raised its dividend for 3 consecutive years.

Insider and Institutional Ownership

61.7% of Entravision Communication shares are owned by institutional investors. Comparatively, 90.8% of Media General shares are owned by institutional investors. 21.2% of Entravision Communication shares are owned by company insiders. Comparatively, 16.5% of Media General shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Entravision Communication and Media General, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entravision Communication 0 2 1 0 2.33
Media General 0 0 0 0 N/A

Entravision Communication currently has a consensus price target of $7.00, indicating a potential upside of 23.89%. Given Entravision Communication’s higher possible upside, analysts clearly believe Entravision Communication is more favorable than Media General.

Profitability

This table compares Entravision Communication and Media General’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entravision Communication 7.57% 11.23% 3.65%
Media General -4.25% 6.92% 2.28%

Volatility & Risk

Entravision Communication has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Media General has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Valuation & Earnings

This table compares Entravision Communication and Media General’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Entravision Communication $257.91 million 1.98 $64.55 million $0.20 28.25
Media General N/A N/A N/A ($0.47) -39.38

Entravision Communication has higher revenue and earnings than Media General. Media General is trading at a lower price-to-earnings ratio than Entravision Communication, indicating that it is currently the more affordable of the two stocks.

Summary

Entravision Communication beats Media General on 9 of the 13 factors compared between the two stocks.

Entravision Communication Company Profile

Entravision Communications Corporation is a media company. The Company reaches and engages Hispanics in the United States and certain border markets of Mexico across media channels and advertising platforms. The Company operates through three segments: television broadcasting, radio broadcasting and digital media. As of December 31, 2016, the Company owned and operated 54 television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, District of Columbia. It owns and operates Spanish-language radio stations in the United States. As of December 31, 2016, its radio stations consisted of 38 frequency modulation (FM) and 11 amplitude modulation (AM) stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The digital media segment provides digital advertising solutions that allow advertisers to reach online Hispanic audiences throughout the United States and Mexico.

Media General Company Profile

Media General, Inc. is a television broadcasting and digital media company. The Company provides news, information and entertainment in markets across the United States. The Company operates or services 71 network-affiliated broadcast television stations in 48 markets along with the digital media business. The Company’s network affiliations include twelve CBS stations, nine NBC stations, seven ABC stations, one FOX station, one CW station and one MyNetworkTV station. The Company offers consumers and advertisers with entertainment and information, content and distribution on every screen. Its portfolio of broadcast, digital and mobile products informs and engages 23% of United States Television (TV) households and 43% of the United States Internet audience. The Company has the diverse digital media business with a portfolio that includes LIN Digital, LIN Mobile, HYFN, Dedicated Media, Federated Media and BiteSizeTV.

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