Analyzing Spanish Broadcasting System (OTCMKTS:SBSAA) and fuboTV (NYSE:FUBO)

fuboTV (NYSE:FUBO) and Spanish Broadcasting System (OTCMKTS:SBSAA) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Volatility and Risk

fuboTV has a beta of 2.38, suggesting that its share price is 138% more volatile than the S&P 500. Comparatively, Spanish Broadcasting System has a beta of 4.75, suggesting that its share price is 375% more volatile than the S&P 500.

Profitability

This table compares fuboTV and Spanish Broadcasting System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
fuboTV	5.50%	-20.81%	-5.41%
Spanish Broadcasting System	-4.51%	N/A	-1.67%

Valuation & Earnings

This table compares fuboTV and Spanish Broadcasting System”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
fuboTV	$1.62 billion	0.73	-$172.25 million	$0.26	13.37
Spanish Broadcasting System	$155.06 million	0.00	$1.66 million	$0.17	0.41

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for fuboTV and Spanish Broadcasting System, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
fuboTV	1	1	2	1	2.60
Spanish Broadcasting System	0	0	0	0	0.00

fuboTV currently has a consensus target price of $4.63, indicating a potential upside of 33.09%. Given fuboTV’s stronger consensus rating and higher probable upside, analysts clearly believe fuboTV is more favorable than Spanish Broadcasting System.

Institutional & Insider Ownership

39.3% of fuboTV shares are owned by institutional investors. 5.3% of fuboTV shares are owned by insiders. Comparatively, 48.3% of Spanish Broadcasting System shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

fuboTV beats Spanish Broadcasting System on 10 of the 15 factors compared between the two stocks.

About fuboTV

fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.

About Spanish Broadcasting System

Spanish Broadcasting System, Inc. operates as a Spanish-language media and entertainment company in the United States. It operates in two segments, Radio and Television. The company produces and distributes Spanish-language content, including radio programs, television shows, and music and live entertainment. It also owns and operates radio stations in the Los Angeles, New York, Puerto Rico, Chicago, Miami, Orlando, Tampa and San Francisco markets; AIRE radio networks with approximately affiliate radio stations; and television stations under the MegaTV brand, as well as has various MegaTV broadcasting outlets under affiliation or programming agreements. In addition, the company produces live concerts and events; and owns bilingual websites, including lamusica.com, Mega.tv, and various station websites that provide content related to Latin music, entertainment, news, and culture, as well as operates the LaMusica mobile app. Further, it offers Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40, and Urbano format genres through its radio stations; and television programs range from televised radio-branded shows to general entertainment programs, such as music, celebrity, news, debate, interviews, and personality-based shows. The company was founded in 1983 and is based in Miami, Florida.