Financial Analysis: iHeartMedia (NASDAQ:IHRT) vs. Urban One (NASDAQ:UONE)

iHeartMedia (NASDAQ:IHRTGet Rating) and Urban One (NASDAQ:UONEGet Rating) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Volatility and Risk

iHeartMedia has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Urban One has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares iHeartMedia and Urban One’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iHeartMedia 0.92% 5.40% 0.52%
Urban One 11.83% 21.68% 4.36%

Analyst Ratings

This is a breakdown of recent ratings and price targets for iHeartMedia and Urban One, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iHeartMedia 1 1 3 0 2.40
Urban One 0 0 0 0 N/A

iHeartMedia currently has a consensus target price of $26.40, indicating a potential upside of 211.32%. Given iHeartMedia’s higher possible upside, analysts clearly believe iHeartMedia is more favorable than Urban One.

Valuation and Earnings

This table compares iHeartMedia and Urban One’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iHeartMedia $3.56 billion 0.34 -$159.20 million $0.23 36.87
Urban One $441.46 million 0.76 $38.35 million $1.00 6.51

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

Insider and Institutional Ownership

80.2% of iHeartMedia shares are owned by institutional investors. Comparatively, 1.9% of Urban One shares are owned by institutional investors. 2.9% of iHeartMedia shares are owned by insiders. Comparatively, 31.3% of Urban One shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Urban One beats iHeartMedia on 7 of the 13 factors compared between the two stocks.

iHeartMedia Company Profile (Get Rating)

iHeartMedia, Inc. operates as a media and entertainment company worldwide. 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 live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents approximately 120 syndicated radio programs and services to approximately 6,400 radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news through approximately 2,100 radio stations and 170 television affiliates, and Internet and mobile partnerships. As of December 31, 2021, this segment owned 863 radio stations, which included 249 AM and 614 FM radio stations. 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. This segment also provides 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 approximately 10,000 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. iHeartMedia, Inc. is headquartered in San Antonio, Texas.

Urban One Company Profile (Get Rating)

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of December 31, 2021, it owned and/or operated 64 broadcast stations, including 54 FM or AM stations, 8 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is headquartered in Silver Spring, Maryland.

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