Global Eagle Entertainment (NASDAQ: ENT) and Gray Television (NYSE:GTN) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Earnings and Valuation

This table compares Global Eagle Entertainment and Gray Television’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Global Eagle Entertainment $530.01 0.00 -$109.18 ($1.38) N/A
Gray Television $812.47 1.38 $62.27 $1.60 9.63

Gray Television has higher revenue and earnings than Global Eagle Entertainment. Global Eagle Entertainment is trading at a lower price-to-earnings ratio than Gray Television, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Global Eagle Entertainment and Gray Television, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Eagle Entertainment 1 3 1 0 2.00
Gray Television 0 0 5 0 3.00

Global Eagle Entertainment currently has a consensus target price of $10.50, suggesting a potential upside of Infinity. Gray Television has a consensus target price of $18.60, suggesting a potential upside of 20.78%. Given Global Eagle Entertainment’s higher probable upside, equities analysts clearly believe Global Eagle Entertainment is more favorable than Gray Television.

Insider & Institutional Ownership

92.6% of Global Eagle Entertainment shares are owned by institutional investors. Comparatively, 81.6% of Gray Television shares are owned by institutional investors. 3.9% of Global Eagle Entertainment shares are owned by insiders. Comparatively, 12.0% of Gray Television shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Global Eagle Entertainment and Gray Television’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Eagle Entertainment N/A N/A N/A
Gray Television 13.38% 17.32% 3.12%

Risk & Volatility

Global Eagle Entertainment has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Gray Television has a beta of 3.22, suggesting that its share price is 222% more volatile than the S&P 500.

Summary

Gray Television beats Global Eagle Entertainment on 10 of the 12 factors compared between the two stocks.

About Global Eagle Entertainment

Global Eagle Entertainment Inc. is a provider of aircraft connectivity systems, operations solutions and media content to the travel industry. The Company’s segments include Connectivity and Content. Its Connectivity segment provides airline partners and their passengers with Wireless Fidelity (Wi-Fi) connectivity over Ku-band satellite transmissions, and to a lesser extent operations solutions to airline customers. Its Content segment selects, manages and distributes wholly owned and licensed media content, video and music programming, applications, digital advertising solutions and games to over 150 airlines across the world, as well as to maritime and other away-from-home non-theatrical markets. The Company, through its product and services platform, provide airlines with a range of in-flight solutions, including Wi-Fi, movies, television, music, interactive software, as well as portable in-flight entertainment (IFE) solutions, content management services and e-commerce solutions.

About Gray Television

Gray Television, Inc. is a television broadcast company. The Company owns and operates television stations and digital assets in various markets across the United States. As of February 21, 2017, the Company owned and/or operated television stations in 54 television markets broadcasting over 200 separate programming streams, including 37 affiliates of the CBS Network (CBS), 29 affiliates of the NBC Network (NBC), 20 affiliates of the ABC Network (ABC) and 15 affiliates of the FOX Network (FOX). In addition to a primary broadcast channel, each of its stations can also broadcast additional secondary digital channels within a market by utilizing the same bandwidth, but with different programming from the primary channel. The Company also broadcasts local news/weather channels in certain of its existing markets. Along with affiliations with ABC, CBS and FOX, the Company’s secondary channels are affiliated with various smaller networks and program services.

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