Head-To-Head Contrast: Saga Communications (NASDAQ:SGA) & iHeartMedia (NASDAQ:IHRT)

iHeartMedia (NASDAQ:IHRTGet Rating) and Saga Communications (NASDAQ:SGAGet Rating) 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 risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Profitability

This table compares iHeartMedia and Saga Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iHeartMedia 0.92% 5.40% 0.52%
Saga Communications 10.45% 5.90% 4.64%

Insider & Institutional Ownership

80.2% of iHeartMedia shares are held by institutional investors. Comparatively, 65.6% of Saga Communications shares are held by institutional investors. 2.9% of iHeartMedia shares are held by company insiders. Comparatively, 17.8% of Saga Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

iHeartMedia has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Saga Communications has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for iHeartMedia and Saga Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iHeartMedia 1 1 3 0 2.40
Saga Communications 0 0 0 0 N/A

iHeartMedia currently has a consensus target price of $26.40, indicating a potential upside of 211.32%. Given iHeartMedia’s higher probable upside, equities research analysts plainly believe iHeartMedia is more favorable than Saga Communications.

Earnings & Valuation

This table compares iHeartMedia and Saga Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iHeartMedia $3.56 billion 0.34 -$159.20 million $0.23 36.87
Saga Communications $108.34 million 1.33 $11.16 million $1.92 12.44

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

Summary

Saga Communications beats iHeartMedia on 7 of the 13 factors compared between the two stocks.

About iHeartMedia (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.

About Saga Communications (Get Rating)

Saga Communications, Inc., a broadcast company, acquires, develops, and operates broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, adult hits, top 40, country, country legends, mainstream/hot/soft adult contemporary, pure oldies, classic rock, and news/talk. As of February 28, 2022, it owned seventy-nine FM, thirty- four AM radio stations, and seventy-nine metro signals serving twenty-seven markets. The company was founded in 1986 and is headquartered in Grosse Pointe Farms, Michigan.

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