Salem Media Group (NASDAQ: SALM) and Corus Entertainment (OTCMKTS:CJREF) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Institutional & Insider Ownership
30.5% of Salem Media Group shares are owned by institutional investors. Comparatively, 0.3% of Corus Entertainment shares are owned by institutional investors. 60.0% of Salem Media Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Salem Media Group and Corus Entertainment’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Salem Media Group||$263.74 million||0.36||$24.64 million||$0.22||16.36|
|Corus Entertainment||$1.27 billion||0.75||$145.18 million||N/A||N/A|
Corus Entertainment has higher revenue and earnings than Salem Media Group.
This table compares Salem Media Group and Corus Entertainment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Salem Media Group||9.34%||2.54%||0.96%|
Risk and Volatility
Salem Media Group has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Corus Entertainment has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Salem Media Group pays an annual dividend of $0.26 per share and has a dividend yield of 7.2%. Corus Entertainment pays an annual dividend of $0.89 per share and has a dividend yield of 19.1%. Salem Media Group pays out 118.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent ratings and price targets for Salem Media Group and Corus Entertainment, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Salem Media Group||0||0||1||0||3.00|
Corus Entertainment beats Salem Media Group on 8 of the 13 factors compared between the two stocks.
About Salem Media Group
Salem Media Group, Inc., formerly Salem Communications Corporation, is a multi-media company specializing in Christian and Conservative content, with media properties consisting of radio broadcasting, digital media, and book, magazine and newsletter publishing. The Company operates through three segments: Broadcast, Digital Media and Publishing. The Company’s broadcasting segment is engaged in the ownership and operation of radio stations in metropolitan markets. The Company’s radio stations carry national and local programming content, as well as national and local advertisers. The Company’s Digital Media segment focuses on Web-based platform designed for audiences interested in Christian and family-themed content and conservative news. The Company’s publishing segment consists of Regnery Publishing, Xulon Press and Salem Publishing. The Company owns and operates approximately 116 radio stations in over 40 markets.
About Corus Entertainment
Corus Entertainment Inc. is a media and content company. The Company creates and delivers quality brands and content across platforms for audiences around the world. The Company’s portfolio of multimedia offerings encompasses 45 specialty television services, 39 radio stations, 15 conventional television stations, a global content business, digital assets, live events, children’s book publishing, animation software, technology and media services. Corus’ roster of premium brands includes Global Television, W Network, OWN: Oprah Winfrey Network Canada, HGTV Canada, Food Network Canada, HISTORY, Showcase, National Geographic Channel, Q107, CKNW, Fresh Radio, Disney Channel Canada, YTV and Nickelodeon Canada.
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