Entravision Communications Corporation (NYSE: EVC) and E. W. Scripps (NYSE:SSP) 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 analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Insider & Institutional Ownership
62.4% of Entravision Communications Corporation shares are owned by institutional investors. Comparatively, 74.9% of E. W. Scripps shares are owned by institutional investors. 20.7% of Entravision Communications Corporation shares are owned by company insiders. Comparatively, 4.2% of E. W. Scripps shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Entravision Communications Corporation has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, E. W. Scripps has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500.
Dividends
Entravision Communications Corporation pays an annual dividend of $0.13 per share and has a dividend yield of 2.3%. E. W. Scripps does not pay a dividend. Entravision Communications Corporation pays out 61.9% of its earnings in the form of a dividend. E. W. Scripps has increased its dividend for 3 consecutive years.
Analyst Recommendations
This is a breakdown of recent ratings for Entravision Communications Corporation and E. W. Scripps, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Entravision Communications Corporation | 0 | 2 | 1 | 0 | 2.33 |
| E. W. Scripps | 0 | 2 | 2 | 0 | 2.50 |
Entravision Communications Corporation presently has a consensus target price of $7.00, indicating a potential upside of 23.89%. E. W. Scripps has a consensus target price of $23.00, indicating a potential upside of 27.78%. Given E. W. Scripps’ stronger consensus rating and higher possible upside, analysts plainly believe E. W. Scripps is more favorable than Entravision Communications Corporation.
Valuation and Earnings
This table compares Entravision Communications Corporation and E. W. Scripps’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Entravision Communications Corporation | $263.59 million | 1.94 | $61.52 million | $0.21 | 26.90 |
| E. W. Scripps | $948.55 million | 1.56 | $169.52 million | $0.69 | 26.09 |
E. W. Scripps has higher revenue and earnings than Entravision Communications Corporation. E. W. Scripps is trading at a lower price-to-earnings ratio than Entravision Communications Corporation, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Entravision Communications Corporation and E. W. Scripps’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Entravision Communications Corporation | 7.03% | 10.05% | 3.50% |
| E. W. Scripps | 3.69% | 3.55% | 1.98% |
Summary
E. W. Scripps beats Entravision Communications Corporation on 11 of the 17 factors compared between the two stocks.
Entravision Communications Corporation Company Profile
Entravision Communications Corporation is a media company. The Company reaches and engages Hispanics in the United States and certain border markets of Mexico across media channels and advertising platforms. The Company operates through three segments: television broadcasting, radio broadcasting and digital media. As of December 31, 2016, the Company owned and operated 54 television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, District of Columbia. It owns and operates Spanish-language radio stations in the United States. As of December 31, 2016, its radio stations consisted of 38 frequency modulation (FM) and 11 amplitude modulation (AM) stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The digital media segment provides digital advertising solutions that allow advertisers to reach online Hispanic audiences throughout the United States and Mexico.
E. W. Scripps Company Profile
The E. W. Scripps Company is a media enterprise with interests in television and radio broadcasting, as well as local and national digital media brands. The Company’s segments include television, radio, digital, and syndication and other. As of December 31, 2016, the Television segment included approximately 15 American Broadcasting Company (ABC) affiliates, five National Broadcasting Company (NBC) affiliates, two FOX affiliates, two Columbia Broadcasting System (CBS) affiliates and four non big-four affiliated stations. As of December 31, 2016, the radio segment owned 34 radio stations in eight markets. As of December 31, 2016, it operated 28 frequency modulation (FM) stations and six Amplitude Modulation (AM) stations. The digital segment includes the digital operations of its local television and radio businesses. Its Syndication and other segment primarily includes the syndication of news features and comics and other features for the newspaper industry.
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