Beasley Broadcast Group (NASDAQ: BBGI) and Entercom Communications (NYSE:ETM) are both small-cap cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
This table compares Beasley Broadcast Group and Entercom Communications’ 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%|
14.7% of Beasley Broadcast Group shares are held by institutional investors. Comparatively, 65.8% of Entercom Communications shares are held by institutional investors. 61.6% of Beasley Broadcast Group shares are held by company insiders. Comparatively, 32.6% of Entercom Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Beasley Broadcast Group pays an annual dividend of $0.18 per share and has a dividend yield of 1.4%. Entercom Communications pays an annual dividend of $0.36 per share and has a dividend yield of 3.2%. Beasley Broadcast Group pays out 7.3% of its earnings in the form of a dividend. 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.
Valuation & Earnings
This table compares Beasley Broadcast Group and Entercom Communications’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Beasley Broadcast Group||$136.66 million||2.80||$47.48 million||$2.46||5.41|
|Entercom Communications||$460.24 million||0.99||$38.06 million||$0.25||44.80|
Beasley Broadcast Group has higher earnings, but lower revenue 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.
This is a breakdown of recent ratings for Beasley Broadcast Group and Entercom Communications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Beasley Broadcast Group||0||0||0||0||N/A|
Risk & Volatility
Beasley Broadcast Group has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Entercom Communications has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
Beasley Broadcast Group beats Entercom Communications on 9 of the 14 factors compared between the two stocks.
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.
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.
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