Head-To-Head Contrast: Sinclair (NASDAQ:SBGI) & Reservoir Media (NASDAQ:RSVR)

Sinclair (NASDAQ:SBGI) and Reservoir Media (NASDAQ:RSVR) 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, dividends, analyst recommendations, profitability, earnings and valuation.

Institutional & Insider Ownership

41.7% of Sinclair shares are held by institutional investors. Comparatively, 44.4% of Reservoir Media shares are held by institutional investors. 41.9% of Sinclair shares are held by company insiders. Comparatively, 27.0% of Reservoir Media shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Sinclair has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Reservoir Media has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Sinclair and Reservoir Media’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sinclair	3.72%	34.15%	2.23%
Reservoir Media	4.88%	2.15%	0.96%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sinclair and Reservoir Media, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sinclair	1	2	2	0	2.20
Reservoir Media	0	0	1	0	3.00

Sinclair currently has a consensus target price of $18.50, suggesting a potential upside of 19.12%. Reservoir Media has a consensus target price of $11.50, suggesting a potential upside of 43.21%. Given Reservoir Media’s stronger consensus rating and higher possible upside, analysts plainly believe Reservoir Media is more favorable than Sinclair.

Valuation and Earnings

This table compares Sinclair and Reservoir Media”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sinclair	$3.53 billion	0.31	$310.00 million	$2.01	7.73
Reservoir Media	$158.71 million	3.30	$7.75 million	$0.11	73.00

Sinclair has higher revenue and earnings than Reservoir Media. Sinclair is trading at a lower price-to-earnings ratio than Reservoir Media, indicating that it is currently the more affordable of the two stocks.

Summary

Sinclair beats Reservoir Media on 8 of the 14 factors compared between the two stocks.

About Sinclair

Sinclair, Inc., a media company, provides content on local television stations and digital platforms in the United States. It operates through two segments, Local Media and Tennis. The Local Media segment operates broadcast television stations, original networks, and content; provides free-over-the-air programming and live local sporting events on its stations; distributes its content to multi-channel video programming distributors in exchange for contractual fees; and produces local and original news programs. This segment operates The Nest, a free over-the-air national broadcast TV network; Comet, a science fiction network; CHARGE!, an adventure and action-based network; and TBD, a multiscreen TV network. The Tennis segment offers Tennis Channel, a cable network which includes coverage of tennis' top tournaments and original professional sports, and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com and Pickleballtv. It also provides digital and internet solutions; and technical services, including the design and manufacture of broadcast systems. The company distributes its content through broadcast platforms and third-party platforms that consist of programming provided by third-party networks and syndicators, local news, and other original programming. Sinclair, Inc. was founded in 1971 and is headquartered in Hunt Valley, Maryland.

About Reservoir Media

Reservoir Media, Inc. operates as a music publishing company. It operates through two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and is headquartered in New York, New York.