Gray Television (NYSE: GTN) and Belo (NYSE:BLC) are both small-cap cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Volatility and Risk

Gray Television has a beta of 3.13, indicating that its share price is 213% more volatile than the S&P 500. Comparatively, Belo has a beta of 3.11, indicating that its share price is 211% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Gray Television 14.91% 15.53% 2.91%
Belo N/A N/A N/A

Insider and Institutional Ownership

67.4% of Gray Television shares are owned by institutional investors. 12.0% of Gray Television shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Gray Television and Belo’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gray Television $812.47 million 1.79 $62.27 million $1.82 8.90
Belo N/A N/A N/A $0.88 N/A

Gray Television has higher revenue and earnings than Belo. Belo 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 Recommendations

This is a summary of current ratings and price targets for Gray Television and Belo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gray Television 0 0 6 0 3.00
Belo 0 0 0 0 N/A

Gray Television presently has a consensus target price of $18.67, indicating a potential upside of 15.23%.

Summary

Gray Television beats Belo on 9 of the 9 factors compared between the two stocks.

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.

About Belo

Belo Corp. (Belo) is a television company. The Company owns 20 television stations, including ABC, CBS, NBC, FOX, CW and MyNetwork TV (MNTV) affiliates, and their associated websites, in 15 markets across the United States. The Company also has three local and two regional news channels. Belo also has a services agreement with the owner and operator of KFWD-TV, licensed to Fort Worth, Texas. Six of the Company’s stations are located in four metropolitan areas in the United States: ABC affiliate WFAA-TV in Dallas/Fort Worth; CBS affiliate KHOU-TV in Houston; NBC affiliate KING-TV and independent KONG-TV in Seattle/Tacoma, and Independent KTVK and The CW Network (CW) affiliate KASW-TV in Phoenix. Belo’s television stations have been recognized with numerous local, state and national awards for news coverage and community service. In December 2013, Gannett Co Inc announced that it has completed the acquisition of Belo Corp.

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