Townsquare Media (NYSE: TSQ) and Beasley Broadcast Group (NASDAQ:BBGI) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
Insider and Institutional Ownership
48.2% of Townsquare Media shares are owned by institutional investors. Comparatively, 14.7% of Beasley Broadcast Group shares are owned by institutional investors. 25.7% of Townsquare Media shares are owned by insiders. Comparatively, 61.6% of Beasley Broadcast Group 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.
This table compares Townsquare Media and Beasley Broadcast Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Beasley Broadcast Group||25.94%||12.35%||4.05%|
Volatility & Risk
Townsquare Media has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Beasley Broadcast Group has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.
Valuation and Earnings
This table compares Townsquare Media and Beasley Broadcast Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Townsquare Media||$516.87 million||0.28||$23.05 million||$0.66||11.83|
|Beasley Broadcast Group||$136.66 million||2.45||$47.48 million||$2.20||5.30|
Beasley Broadcast Group has lower revenue, but higher earnings than Townsquare Media. Beasley Broadcast Group is trading at a lower price-to-earnings ratio than Townsquare Media, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Townsquare Media and Beasley Broadcast Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Beasley Broadcast Group||0||0||0||0||N/A|
Townsquare Media currently has a consensus price target of $11.50, indicating a potential upside of 47.25%. Given Townsquare Media’s higher probable upside, analysts plainly believe Townsquare Media is more favorable than Beasley Broadcast Group.
Beasley Broadcast Group pays an annual dividend of $0.18 per share and has a dividend yield of 1.5%. Townsquare Media does not pay a dividend. Beasley Broadcast Group pays out 8.2% of its earnings in the form of a dividend.
Beasley Broadcast Group beats Townsquare Media on 8 of the 15 factors compared between the two stocks.
About Townsquare Media
Townsquare Media, Inc. is a media, entertainment and digital marketing solutions company principally focused on small and mid-sized markets across the United States. The Company operates through two segments: Local Advertising and Live Events. The Company’s Local Advertising segment offers broadcast, digital and mobile advertising within its local markets. The Company’s Live Events segment consists of a range of live events, which the Company creates, promotes and produces, including music concerts, multi-day music festivals, fairs, consumer expositions and trade shows, athletic events, lifestyle events and other forms of entertainment. The Company reports the remainder of its business in its Other Media and Entertainment category, which principally provides digital marketing solutions, e-commerce solutions and digital advertising services nationally. The Company’s assets include radio stations, live events, and digital, mobile, video and social media properties.
About Beasley Broadcast Group
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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