Financial Analysis: Radioio (OTCMKTS:RAIO) vs. Saga Communications (NASDAQ:SGA)

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

Analyst Ratings

This is a summary of current ratings for Radioio and Saga Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radioio	0	0	0	0	0.00
Saga Communications	2	0	0	0	1.00

Given Radioio’s higher possible upside, research analysts clearly believe Radioio is more favorable than Saga Communications.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Radioio	N/A	N/A	N/A
Saga Communications	0.27%	0.18%	0.13%

Valuation & Earnings

This table compares Radioio and Saga Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radioio	N/A	N/A	N/A	N/A	N/A
Saga Communications	$110.29 million	0.67	$3.46 million	$0.05	228.80

Saga Communications has higher revenue and earnings than Radioio.

Insider and Institutional Ownership

74.3% of Saga Communications shares are owned by institutional investors. 40.4% of Radioio shares are owned by company insiders. Comparatively, 22.4% of Saga Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Saga Communications beats Radioio on 6 of the 8 factors compared between the two stocks.

About Radioio

Radioio, Inc. operates an Internet media platform that provides streamed music to targeted audiences. Radioio broadcasts 140 streaming channels, and offers Internet radio services, including customized channels with various genres of music ranging from high-brow classical to acid rock. The company also provides a background music and messaging ecosystem for large franchise businesses and other vertical markets, such as retail, hospitality, and health and wellness. In addition, it offers Radioio live channels that stream live and pre-recorded talk radio content over the Internet to individual customers via advertising. The company was formerly known as ioWorldMedia, Incorporated and changed its name to Radioio, Inc. December 2013. Radioio, Inc. was incorporated in 1995 and is based in New York, New York.

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.