Critical Review: Radio One (NASDAQ:UONE) and Gray Media (NYSE:GTN)

Radio One (NASDAQ:UONEGet Free Report) and Gray Media (NYSE:GTNGet Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

8.2% of Radio One shares are held by institutional investors. Comparatively, 78.6% of Gray Media shares are held by institutional investors. 41.3% of Radio One shares are held by company insiders. Comparatively, 15.2% of Gray Media shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Radio One and Gray Media, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radio One 0 0 0 0 0.00
Gray Media 0 1 3 0 2.75

Gray Media has a consensus target price of $6.88, suggesting a potential upside of 24.32%. Given Gray Media’s stronger consensus rating and higher possible upside, analysts plainly believe Gray Media is more favorable than Radio One.

Risk and Volatility

Radio One has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Gray Media has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares Radio One and Gray Media”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Radio One $449.67 million 0.15 -$105.39 million ($3.46) -0.43
Gray Media $3.64 billion 0.15 $375.00 million $1.51 3.66

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

Profitability

This table compares Radio One and Gray Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Radio One -38.19% 13.04% 2.28%
Gray Media 5.64% 10.31% 2.17%

Summary

Gray Media beats Radio One on 11 of the 14 factors compared between the two stocks.

About Radio One

(Get Free Report)

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 April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 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 based in Silver Spring, Maryland.

About Gray Media

(Get Free Report)

Gray Television, Inc., a television broadcasting company, owns and/or operates television stations and digital assets in the United States. It also broadcasts secondary digital channels affiliated to ABC, CBS, NBC, and FOX, as well as various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, Circle, Telemundo, THE365, and Outlaw; and local news/weather channels in various markets. It owns and operates television stations and digital assets that serve television markets in the United States. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.

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