Comparing Entravision Communications (NYSE:EVC) & Saga Communications (NASDAQ:SGA)

Saga Communications (NASDAQ:SGA) and Entravision Communications (NYSE:EVC) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Volatility & Risk

Saga Communications has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Entravision Communications has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Saga Communications and Entravision Communications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saga Communications	2	0	0	0	1.00
Entravision Communications	1	0	0	0	1.00

Dividends

Saga Communications pays an annual dividend of $1.00 per share and has a dividend yield of 8.3%. Entravision Communications pays an annual dividend of $0.20 per share and has a dividend yield of 7.0%. Saga Communications pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Entravision Communications pays out -15.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Saga Communications and Entravision Communications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saga Communications	$112.00 million	0.69	$3.46 million	$0.05	240.20
Entravision Communications	$420.18 million	0.62	-$148.91 million	($1.30)	-2.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Saga Communications	1.91%	1.27%	0.95%
Entravision Communications	-30.16%	-51.15%	-14.52%

Insider and Institutional Ownership

74.3% of Saga Communications shares are held by institutional investors. Comparatively, 69.5% of Entravision Communications shares are held by institutional investors. 22.4% of Saga Communications shares are held by insiders. Comparatively, 8.3% of Entravision Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Saga Communications beats Entravision Communications on 10 of the 13 factors compared between the two stocks.

About Saga Communications

Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.

About Entravision Communications

Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.