Cumulus Media (NASDAQ:CMLS – Get Free Report) and Educational Development (NASDAQ:EDUC – Get Free Report) are both small-cap communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.
Analyst Recommendations
This is a summary of recent ratings and target prices for Cumulus Media and Educational Development, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cumulus Media | 0 | 1 | 0 | 0 | 2.00 |
| Educational Development | 1 | 0 | 0 | 0 | 1.00 |
Volatility & Risk
Cumulus Media has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Educational Development has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Cumulus Media | -18.11% | -30.27% | -5.62% |
| Educational Development | 9.75% | -18.23% | -12.73% |
Earnings & Valuation
This table compares Cumulus Media and Educational Development”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cumulus Media | $827.08 million | 0.00 | -$117.88 million | ($17.39) | -0.00 |
| Educational Development | $22.91 million | 0.51 | $2.33 million | $0.23 | 6.00 |
Educational Development has lower revenue, but higher earnings than Cumulus Media. Cumulus Media is trading at a lower price-to-earnings ratio than Educational Development, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
48.7% of Cumulus Media shares are held by institutional investors. Comparatively, 19.6% of Educational Development shares are held by institutional investors. 11.9% of Cumulus Media shares are held by company insiders. Comparatively, 11.9% of Educational Development shares are held 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.
Summary
Educational Development beats Cumulus Media on 8 of the 12 factors compared between the two stocks.
About Cumulus Media
Cumulus Media Inc., an audio-first media company, owns and operates radio stations in the United States. It owns and operates stations in various markets, as well as affiliated stations through Westwood One. The company's content portfolio includes sports, news, talk, and entertainment programming from various brands, including the NFL, the NCAA, the Masters, CNN, AP News, the Academy of Country Music Awards, and other partners. In addition, the company provides digital marketing services, such as email marketing, geo-targeted display and video solutions, website and microsite building, hosting, social media management, reputation and listing management, and search engine marketing and optimization; influencers, audio solutions, research and insights, and live event services; and advertising performance guarantee services. The company serves advertisers through broadcast and on-demand digital, mobile, social, and voice-activated platforms. Cumulus Media Inc. was founded in 2002 and is based in Atlanta, Georgia.
About Educational Development
Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.
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