Analyzing Townsquare Media (NYSE:TSQ) & iHeartMedia (NASDAQ:IHRT)

iHeartMedia (NASDAQ:IHRTGet Rating) and Townsquare Media (NYSE:TSQGet Rating) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

80.2% of iHeartMedia shares are held by institutional investors. Comparatively, 50.0% of Townsquare Media shares are held by institutional investors. 2.9% of iHeartMedia shares are held by company insiders. Comparatively, 29.1% of Townsquare Media shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for iHeartMedia and Townsquare Media, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iHeartMedia 0 2 3 0 2.60
Townsquare Media 0 0 0 0 N/A

iHeartMedia currently has a consensus price target of $29.20, suggesting a potential upside of 157.04%. Given iHeartMedia’s higher probable upside, equities analysts clearly believe iHeartMedia is more favorable than Townsquare Media.

Profitability

This table compares iHeartMedia and Townsquare Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iHeartMedia N/A N/A N/A
Townsquare Media 5.94% 60.14% 3.81%

Valuation and Earnings

This table compares iHeartMedia and Townsquare Media’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iHeartMedia $3.56 billion 0.45 $32.76 million $0.23 49.39
Townsquare Media $417.96 million 0.40 $16.74 million $1.43 6.88

iHeartMedia has higher revenue and earnings than Townsquare Media. Townsquare Media is trading at a lower price-to-earnings ratio than iHeartMedia, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

iHeartMedia has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Townsquare Media has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Summary

iHeartMedia beats Townsquare Media on 8 of the 13 factors compared between the two stocks.

iHeartMedia Company Profile (Get Rating)

iHeartMedia, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents approximately 120 syndicated radio programs and services to approximately 6,400 radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news through approximately 2,100 radio stations and 170 television affiliates, and Internet and mobile partnerships. As of December 31, 2021, this segment owned 863 radio stations, which included 249 AM and 614 FM radio stations. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web-based service for radio stations, digital-only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business. This segment also provides cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to approximately 10,000 radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. iHeartMedia, Inc. is headquartered in San Antonio, Texas.

Townsquare Media Company Profile (Get Rating)

Townsquare Media, Inc. operates as a digital media and marketing solutions company in small and medium-sized businesses. It operates through three segments: Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. The Subscription Digital Marketing Solutions segment offers various digital marketing solutions, including hosting, search engine optimization, online directory optimization, e-commerce solutions, online reputation monitoring, social media management, appointment scheduling, payment and invoice, customer management, email marketing, and website retargeting services, as well as traditional and mobile-enabled website design, creation, and development services. The Digital Advertising segment provides digital advertising on its owned and operated digital properties, and digital programmatic advertising platforms, as well as data analytics and management platform. The Broadcast Advertising segment engages in the sale of local radio stations to local, regional, and national spot advertisers, and national network advertisers. As of December 31, 2021, this segment owned and operated 322 radio stations and approximately 330 local websites in 67 local markets. It also owns and operates approximately 200 live events, including concerts, expositions, and other experiential events; and operates local media under the WYRK.com, WJON.com, and NJ101.5.com brands, as well as national music under the XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com brands. The company was formerly known as Regent Communications, Inc. and changed its name to Townsquare Media, Inc. in May 2010. Townsquare Media, Inc. was incorporated in 1996 and is headquartered in Purchase, New York.

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