Head-To-Head Contrast: Clear Channel Outdoor (NYSE:CCO) versus Newsmax (NYSE:NMAX)

Clear Channel Outdoor (NYSE:CCO) and Newsmax (NYSE:NMAX) are both small-cap communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Profitability

This table compares Clear Channel Outdoor and Newsmax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clear Channel Outdoor	-6.31%	N/A	-2.08%
Newsmax	-3.15%	-8.28%	-3.85%

Volatility and Risk

Clear Channel Outdoor has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Newsmax has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500.

Institutional and Insider Ownership

85.5% of Clear Channel Outdoor shares are held by institutional investors. 7.7% of Clear Channel Outdoor shares are held by company insiders. Comparatively, 61.0% of Newsmax shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Clear Channel Outdoor and Newsmax, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clear Channel Outdoor	0	4	0	0	2.00
Newsmax	1	1	0	0	1.50

Clear Channel Outdoor currently has a consensus price target of $2.43, indicating a potential upside of 0.04%. Given Clear Channel Outdoor’s stronger consensus rating and higher possible upside, analysts clearly believe Clear Channel Outdoor is more favorable than Newsmax.

Valuation & Earnings

This table compares Clear Channel Outdoor and Newsmax”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clear Channel Outdoor	$1.68 billion	0.74	$19.94 million	($0.21)	-11.57
Newsmax	$189.26 million	4.98	-$99.50 million	($0.05)	-145.90

Clear Channel Outdoor has higher revenue and earnings than Newsmax. Newsmax is trading at a lower price-to-earnings ratio than Clear Channel Outdoor, indicating that it is currently the more affordable of the two stocks.

Summary

Clear Channel Outdoor beats Newsmax on 7 of the 12 factors compared between the two stocks.

About Clear Channel Outdoor

Clear Channel Outdoor Holdings, Inc. is an out-of-home advertising company that connects advertisers with audiences through displays in public spaces. Its inventory includes traditional and digital billboards, airport displays, and street-level advertising formats. The company’s U.S. operations serve advertisers across a range of markets, while its airport business places ads in terminals and other airport locations. Digital displays allow the company to offer campaigns that can be updated and scheduled across its network.

About Newsmax

Newsmax is a multimedia news company that produces and distributes news, opinion and lifestyle content. Its offerings include the Newsmax television network, digital news and video platforms, and print publications such as Newsmax magazine. Founded in 1998 by Christopher Ruddy, the company is based in Boca Raton, Florida. Ruddy serves as Newsmax’s chief executive officer. Newsmax reaches audiences in the United States and abroad through television distribution and its digital platforms, which provide news coverage, commentary and other programming.