Cumulus Media (NASDAQ: CMLS) and Entercom Communications Corporation (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 profitabiliy, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Valuation and Earnings

This table compares Cumulus Media and Entercom Communications Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cumulus Media $1.14 billion 0.01 $202.03 million ($17.24) -0.03
Entercom Communications Corporation $461.59 million 0.88 $101.22 million $0.56 17.77

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

Risk and Volatility

Cumulus Media has a beta of 3.55, indicating that its stock price is 255% more volatile than the S&P 500. Comparatively, Entercom Communications Corporation has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Dividends

Entercom Communications Corporation pays an annual dividend of $0.30 per share and has a dividend yield of 3.0%. Cumulus Media does not pay a dividend. Entercom Communications Corporation pays out 53.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

67.0% of Cumulus Media shares are owned by institutional investors. Comparatively, 50.5% of Entercom Communications Corporation shares are owned by institutional investors. 13.5% of Cumulus Media shares are owned by company insiders. Comparatively, 32.6% of Entercom Communications Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Cumulus Media and Entercom Communications Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cumulus Media 0 1 0 0 2.00
Entercom Communications Corporation 0 0 1 0 3.00

Profitability

This table compares Cumulus Media and Entercom Communications Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cumulus Media -44.30% N/A -0.45%
Entercom Communications Corporation 5.27% 8.79% 3.28%

Summary

Entercom Communications Corporation beats Cumulus Media on 9 of the 14 factors compared between the two stocks.

Cumulus Media Company Profile

Cumulus Media Inc. (Cumulus) is a radio broadcasting company. The Company is also a provider of country music and lifestyle content through its NASH brand, which serves through radio programming, NASH Country Weekly magazine and live events. Its product lines include broadcast advertising, digital advertising, political advertising and non-advertising based license fees. Its broadcast advertising includes the sale of commercial advertising time to local, national and network clients. Its digital advertising includes the sale of advertising and promotional opportunities across its Websites and mobile applications. Its across the nation platform generates content distributable through both broadcast and digital platforms. Its categories of advertisers consist of amusement and recreation; banking and mortgage; furniture and home furnishings; arts and entertainment; food and beverage services; healthcare services; automotive dealers; food and beverage stores, and telecommunications.

Entercom Communications Corporation Company Profile

Entercom Communications Corp. is a radio broadcasting company. The Company sells advertising time to local, regional and national advertisers and national network advertisers, purchasing spot commercials in varying lengths. It focuses on station-related digital platforms, which allow for audience interaction and participation, and integrated local digital marketing solutions and station events. Its stations are classified by their format, such as news, sports, talk, classic rock, urban, adult contemporary, alternative and country, among others. As of December 31, 2016, it had a portfolio of radio stations in 28 markets across the United States. It operates in various markets, which include Boston, Buffalo, Denver, Kansas City, Miami, Sacramento, San Francisco and Seattle. Its radio stations include KSWD Frequency Modulation (FM), KOSI FM, KYGO FM, KEPN AM, KKFN FM, KQKS FM, KRWZ Amplitude Modulation (AM), WSTR FM, WAXY AM/FM, WLYF FM, WMXJ FM, KBZT FM, KSON FM/KSOQ FM and KIFM FM.

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