Entercom Communications (NYSE: ETM) and Beasley Broadcast Group (NASDAQ:BBGI) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Profitability

This table compares Entercom Communications and Beasley Broadcast Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entercom Communications 2.69% 8.67% 3.23%
Beasley Broadcast Group 25.94% 12.35% 4.05%

Risk & Volatility

Entercom Communications has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Beasley Broadcast Group has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Entercom Communications and Beasley Broadcast Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entercom Communications 0 0 1 0 3.00
Beasley Broadcast Group 0 0 0 0 N/A

Valuation & Earnings

This table compares Entercom Communications and Beasley Broadcast Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entercom Communications $460.24 million 0.99 $38.06 million $0.25 44.80
Beasley Broadcast Group $136.66 million 2.80 $47.48 million $2.46 5.41

Beasley Broadcast Group has lower revenue, but higher earnings than Entercom Communications. Beasley Broadcast Group is trading at a lower price-to-earnings ratio than Entercom Communications, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

65.8% of Entercom Communications shares are owned by institutional investors. Comparatively, 14.7% of Beasley Broadcast Group shares are owned by institutional investors. 32.6% of Entercom Communications shares are owned by company insiders. Comparatively, 61.6% of Beasley Broadcast Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Entercom Communications pays an annual dividend of $0.36 per share and has a dividend yield of 3.2%. Beasley Broadcast Group pays an annual dividend of $0.18 per share and has a dividend yield of 1.4%. Entercom Communications pays out 144.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Beasley Broadcast Group pays out 7.3% of its earnings in the form of a dividend.

Summary

Beasley Broadcast Group beats Entercom Communications on 9 of the 14 factors compared between the two stocks.

Entercom Communications 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.

Beasley Broadcast Group Company Profile

Beasley Broadcast Group, Inc. is a radio broadcasting company. The Company’s primary business is operating radio stations throughout the United States. As of December 31, 2016, the Company owned and operated 63 radio stations in various radio markets, Atlanta and Augusta in Georgia; Boston, Massachusetts; Charlotte, North Carolina; Detroit, Michigan; Fayetteville, North Carolina; Fort Myers-Naples, Florida; Las Vegas, Nevada; Middlesex, New Jersey; Monmouth, New Jersey; Morristown, New Jersey; Philadelphia, Pennsylvania; Tampa-Saint Petersburg, Florida; West Palm Beach-Boca Raton, Florida, and Wilmington, Delaware. The Company operates its radio stations in clusters to capture a range of demographic listener groups.

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