Critical Analysis: iHeartMedia (IHRT) vs. Its Competitors

iHeartMedia (NASDAQ:IHRTGet Rating) is one of 23 public companies in the “Radio broadcasting stations” industry, but how does it weigh in compared to its peers? We will compare iHeartMedia to related businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Institutional and Insider Ownership

80.2% of iHeartMedia shares are owned by institutional investors. Comparatively, 37.3% of shares of all “Radio broadcasting stations” companies are owned by institutional investors. 2.9% of iHeartMedia shares are owned by insiders. Comparatively, 25.6% of shares of all “Radio broadcasting stations” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares iHeartMedia and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iHeartMedia 0.92% 5.23% 0.53%
iHeartMedia Competitors 6.69% -14.00% 1.04%

Analyst Ratings

This is a breakdown of current ratings and target prices for iHeartMedia and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iHeartMedia 1 1 3 0 2.40
iHeartMedia Competitors 137 568 974 26 2.52

iHeartMedia currently has a consensus target price of $26.40, suggesting a potential upside of 225.52%. As a group, “Radio broadcasting stations” companies have a potential upside of 107.09%. Given iHeartMedia’s higher possible upside, research analysts plainly believe iHeartMedia is more favorable than its peers.

Risk and Volatility

iHeartMedia has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, iHeartMedia’s peers have a beta of 1.05, suggesting that their average share price is 5% more volatile than the S&P 500.

Earnings and Valuation

This table compares iHeartMedia and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
iHeartMedia $3.56 billion -$159.20 million 35.26
iHeartMedia Competitors $2.41 billion $42.25 million -0.09

iHeartMedia has higher revenue, but lower earnings than its peers. iHeartMedia is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

iHeartMedia beats its peers on 7 of the 13 factors compared.

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.

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