SPAR Group (NASDAQ:SGRP – Get Free Report) and Cumulus Media (NASDAQ:CMLS – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
9.6% of SPAR Group shares are owned by institutional investors. Comparatively, 48.7% of Cumulus Media shares are owned by institutional investors. 43.0% of SPAR Group shares are owned by insiders. Comparatively, 11.9% of Cumulus Media shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares SPAR Group and Cumulus Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SPAR Group | -18.51% | -107.74% | -19.90% |
| Cumulus Media | -18.11% | -30.27% | -5.62% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SPAR Group | 1 | 0 | 0 | 0 | 1.00 |
| Cumulus Media | 0 | 1 | 0 | 0 | 2.00 |
Risk and Volatility
SPAR Group has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Cumulus Media has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
Earnings & Valuation
This table compares SPAR Group and Cumulus Media”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SPAR Group | $132.58 million | 0.15 | -$24.63 million | ($1.01) | -0.71 |
| Cumulus Media | $827.08 million | 0.00 | -$117.88 million | ($17.39) | -0.00 |
SPAR Group has higher earnings, but lower revenue than Cumulus Media. SPAR Group is trading at a lower price-to-earnings ratio than Cumulus Media, indicating that it is currently the more affordable of the two stocks.
Summary
Cumulus Media beats SPAR Group on 8 of the 12 factors compared between the two stocks.
About SPAR Group
SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.
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.
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