Head to Head Comparison: Urban One (UONEK) vs. Entercom Communications (ETM)

Urban One (NASDAQ:UONEK) and Entercom Communications (NYSE:ETM) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Valuation & Earnings

This table compares Urban One and Entercom Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Urban One $440.04 million 0.23 $111.88 million N/A N/A
Entercom Communications $592.88 million 1.58 $233.84 million ($0.45) -14.60

Entercom Communications has higher revenue and earnings than Urban One.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Urban One and Entercom Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urban One 0 0 0 0 N/A
Entercom Communications 0 2 1 0 2.33

Entercom Communications has a consensus target price of $8.25, suggesting a potential upside of 25.57%. Given Entercom Communications’ higher probable upside, analysts plainly believe Entercom Communications is more favorable than Urban One.

Dividends

Entercom Communications pays an annual dividend of $0.36 per share and has a dividend yield of 5.5%. Urban One does not pay a dividend. Entercom Communications pays out -80.0% of its earnings in the form of a dividend.

Volatility and Risk

Urban One has a beta of -0.6, meaning that its stock price is 160% less volatile than the S&P 500. Comparatively, Entercom Communications has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

30.0% of Urban One shares are owned by institutional investors. Comparatively, 85.6% of Entercom Communications shares are owned by institutional investors. 50.5% of Urban One shares are owned by insiders. Comparatively, 32.6% of Entercom Communications shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Urban One and Entercom Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urban One 33.45% 85.34% 2.67%
Entercom Communications 19.89% 0.14% 0.05%

Summary

Entercom Communications beats Urban One on 9 of the 13 factors compared between the two stocks.

About Urban One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Reach Media, Digital, and Cable Television. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of December 31, 2017, it owned and/or operated 56 broadcast stations located in 15 urban markets. The Reach Media segment operates operate radio stations, including the Tom Joyner Morning Show; and other syndicated programming assets, including the Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show, as well as Get Up! Mornings with Erica Campbell. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website; and operates other event related activities. The Digital segment is involved in online business, including the operation of Interactive One, an online platform serving the African-American community through social content, news, information, and entertainment Websites, including Cassius, Bossip, HipHopWired, and MadameNoire digital platforms and brands. The Cable Television segment operates TV One, an African-American targeted cable television network. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.

About Entercom Communications

Entercom Communications Corp. operates as a radio broadcasting company in the United States. The company owns and operates radio stations in various formats, such as news, sports, talk, classic rock, urban, adult contemporary, alternative, country, and others. As of February 20, 2018, it had a portfolio of approximately 235 radio stations, digital platforms, and live events. Entercom Communications Corp. was founded in 1968 and is headquartered in Bala Cynwyd, Pennsylvania.

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