Reviewing MediaCo (NASDAQ:MDIA) and iHeartMedia (NASDAQ:IHRT)

iHeartMedia (NASDAQ:IHRT) and MediaCo (NASDAQ:MDIA) are both small-cap communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

iHeartMedia has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, MediaCo has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iHeartMedia	$3.81 billion	0.08	-$264.66 million	($6.95)	-0.30
MediaCo	$37.37 million	0.42	-$46.73 million	($1.81)	-0.34

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

Insider & Institutional Ownership

63.4% of iHeartMedia shares are owned by institutional investors. Comparatively, 65.4% of MediaCo shares are owned by institutional investors. 2.9% of iHeartMedia shares are owned by company insiders. Comparatively, 2.8% of MediaCo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for iHeartMedia and MediaCo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iHeartMedia	3	2	1	0	1.67
MediaCo	0	0	0	0	N/A

iHeartMedia presently has a consensus price target of $4.48, suggesting a potential upside of 113.33%. Given iHeartMedia’s higher probable upside, research analysts clearly believe iHeartMedia is more favorable than MediaCo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iHeartMedia	-27.19%	-1,197.12%	-13.71%
MediaCo	N/A	N/A	N/A

Summary

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

About iHeartMedia

iHeartMedia, Inc. operates as a media and entertainment company worldwide. The company 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 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. 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. iHeartMedia, Inc. is headquartered in San Antonio, Texas.

About MediaCo

MediaCo Holding Inc. owns and operates radio stations in the United States. The company engages in the operation of WQHT-FM and WBLS-FM radio stations in the New York City area. It owns and operates advertising displays, such as bulletins, posters, and digital billboards primarily in Georgia, Alabama, South Carolina, Florida, Kentucky, West Virginia, and Ohio. The company also offers digital advertising and event, which includes sponsorships, ticket sales, licensing, and syndication services. MediaCo Holding Inc. was incorporated in 2019 and is headquartered in New York, New York.