Reviewing Clear Channel Outdoor (NYSE:CCO) & Entravision Communications (NYSE:EVC)

Entravision Communications (NYSE:EVC) and Clear Channel Outdoor (NYSE:CCO) are both small-cap communication services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Risk & Volatility

Entravision Communications has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Clear Channel Outdoor has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Entravision Communications and Clear Channel Outdoor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entravision Communications	1	0	0	0	1.00
Clear Channel Outdoor	2	4	0	0	1.67

Clear Channel Outdoor has a consensus price target of $2.29, indicating a potential downside of 3.70%. Given Clear Channel Outdoor’s stronger consensus rating and higher possible upside, analysts plainly believe Clear Channel Outdoor is more favorable than Entravision Communications.

Valuation and Earnings

This table compares Entravision Communications and Clear Channel Outdoor”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	1.74	-$79.17 million	$0.01	844.00
Clear Channel Outdoor	$1.60 billion	0.76	$19.94 million	($0.21)	-11.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Entravision Communications	0.62%	6.98%	1.17%
Clear Channel Outdoor	-6.31%	N/A	-2.08%

Insider and Institutional Ownership

69.5% of Entravision Communications shares are held by institutional investors. Comparatively, 85.5% of Clear Channel Outdoor shares are held by institutional investors. 9.1% of Entravision Communications shares are held by insiders. Comparatively, 7.7% of Clear Channel Outdoor 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

Entravision Communications beats Clear Channel Outdoor on 7 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 Clear Channel Outdoor

Clear Channel Outdoor Holdings, Inc. operates as an out-of-home advertising company in the United States, Europe, and internationally. It operates through America, Airports, Europe-North, and Other segments. The company provides advertising services through billboards, including bulletins and posters, as well as spectaculars, which are customized display structures with videos, multi-dimensional lettering and figures, mechanical devices, moving parts, and other embellishments; street furniture displays, such as advertising surfaces on bus shelters, information kiosks, news racks, and other public structures; transit displays for rail stations and on various types of vehicles; retail displays; and airport advertising displays. It offers solutions, such as RADARView, an audience and campaign planning tool, which analyzes historical mobile location data; RADARConnect, a campaign amplification solution that delivers ads across mobile and other devices to re-target audience groups exposed to an out-of-home advertisement; RADARProof, a campaign measurement and attribution solutions which analyzes anonymized and/or aggregated data; and RADARSync, a data integration platform that uses customer data across the tools for customized application of solutions to customers' specific audience targets and goals. In addition, the company sells street furniture equipment; provides cleaning and maintenance services; and operates public bike programs, a public bicycle rental program that offers bicycles for rent to the public. The company was formerly known as Eller Media Company and changed its name to Clear Channel Outdoor Holdings, Inc. in August 2005. Clear Channel Outdoor Holdings, Inc. was incorporated in 1995 and is headquartered in San Antonio, Texas.