Entravision Communications (NYSE:EVC) & iHeartMedia (NASDAQ:IHRT) Head-To-Head Survey

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

Valuation & Earnings

This table compares Entravision Communications and iHeartMedia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entravision Communications	$447.59 million	1.88	-$79.17 million	($0.22)	-41.50
iHeartMedia	$3.86 billion	0.16	-$472.87 million	($1.84)	-2.17

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

Institutional & Insider Ownership

69.5% of Entravision Communications shares are owned by institutional investors. Comparatively, 93.9% of iHeartMedia shares are owned by institutional investors. 8.5% of Entravision Communications shares are owned by insiders. Comparatively, 10.2% of iHeartMedia shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Entravision Communications	-3.41%	-25.31%	-4.41%
iHeartMedia	-7.28%	-1.63%	-1.45%

Volatility & Risk

Entravision Communications has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, iHeartMedia has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Entravision Communications and iHeartMedia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entravision Communications	1	0	0	0	1.00
iHeartMedia	2	2	0	0	1.50

iHeartMedia has a consensus price target of $4.25, suggesting a potential upside of 6.52%. Given iHeartMedia’s stronger consensus rating and higher probable upside, analysts plainly believe iHeartMedia is more favorable than Entravision Communications.

Summary

iHeartMedia beats Entravision Communications on 9 of the 13 factors compared between the two stocks.

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.

About iHeartMedia

iHeartMedia, Inc. operates as an audio media company in the United States and internationally. 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 events, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents syndicated radio programs and services to radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news. 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; and provides scheduling and broadcast software and services. This segment also provides RCS, a 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 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. The company is headquartered in San Antonio, Texas.