Head to Head Survey: Radio One (NASDAQ:UONE) and AMC Networks (NASDAQ:AMCX)

Radio One (NASDAQ:UONE) and AMC Networks (NASDAQ:AMCX) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

8.2% of Radio One shares are held by institutional investors. Comparatively, 78.5% of AMC Networks shares are held by institutional investors. 41.3% of Radio One shares are held by company insiders. Comparatively, 15.6% of AMC Networks shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Radio One and AMC Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Radio One	-32.55%	1.85%	0.28%
AMC Networks	-6.03%	11.67%	2.62%

Valuation & Earnings

This table compares Radio One and AMC Networks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radio One	$393.67 million	0.13	-$105.39 million	($2.84)	-0.40
AMC Networks	$2.42 billion	0.15	-$226.55 million	($3.75)	-2.27

Radio One has higher earnings, but lower revenue than AMC Networks. AMC Networks is trading at a lower price-to-earnings ratio than Radio One, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Radio One and AMC Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radio One	1	0	0	0	1.00
AMC Networks	4	3	0	0	1.43

AMC Networks has a consensus price target of $6.50, indicating a potential downside of 23.80%. Given AMC Networks’ stronger consensus rating and higher probable upside, analysts plainly believe AMC Networks is more favorable than Radio One.

Volatility and Risk

Radio One has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, AMC Networks has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Summary

AMC Networks beats Radio One on 9 of the 13 factors compared between the two stocks.

About Radio One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.

About AMC Networks

AMC Networks Inc., an entertainment company, owns and operates a suite of video entertainment products that are delivered to audiences, a platform to distributors, and advertisers in the United States, Europe, and internationally. The company operates through Domestic Operations, and International and Other segments. The Domestic Operations segment operates various national programming networks, including the AMC, We tv, BBC AMERICA, IFC, and SundanceTV; provides subscription streaming services comprising Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as AMC+ and other streaming initiatives; and engages in film distribution business under the IFC Films, RLJ Entertainment Films, and Shudder name. This segment also produces and licenses original programming for various programming networks, as well as services the programming networks. The International and Other segment operates a portfolio of channels under the AMCNI name; and production and comedy venues activities under the Levity name. AMC Networks Inc. was founded in 1980 and is headquartered in New York, New York.