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

Analyst Recommendations

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

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

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%

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 138.5% 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 8.2% of its earnings in the form of a dividend.

Volatility & Risk

Entercom Communications has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Beasley Broadcast Group has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Valuation and 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 1.00 $38.06 million $0.26 43.65
Beasley Broadcast Group $136.66 million 2.70 $47.48 million $2.20 5.82

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.

Institutional and Insider Ownership

65.8% of Entercom Communications shares are held by institutional investors. Comparatively, 14.7% of Beasley Broadcast Group shares are held by institutional investors. 32.6% of Entercom Communications shares are held by insiders. Comparatively, 61.6% of Beasley Broadcast Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Beasley Broadcast Group beats Entercom Communications on 8 of the 14 factors compared between the two stocks.

About Entercom Communications

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.

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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