Spanish Broadcasting System (OTCMKTS:SBSAA – Get Free Report) and Gaia (NASDAQ:GAIA – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Volatility and Risk
Spanish Broadcasting System has a beta of 5.64, suggesting that its share price is 464% more volatile than the S&P 500. Comparatively, Gaia has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
Earnings & Valuation
This table compares Spanish Broadcasting System and Gaia”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Spanish Broadcasting System | $155.06 million | 0.02 | $1.66 million | ($0.99) | -0.40 |
| Gaia | $90.36 million | 1.04 | -$5.23 million | ($0.19) | -19.63 |
Spanish Broadcasting System has higher revenue and earnings than Gaia. Gaia is trading at a lower price-to-earnings ratio than Spanish Broadcasting System, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Spanish Broadcasting System and Gaia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Spanish Broadcasting System | -4.51% | N/A | -1.67% |
| Gaia | -4.87% | -4.80% | -3.22% |
Insider and Institutional Ownership
40.5% of Gaia shares are owned by institutional investors. 48.3% of Spanish Broadcasting System shares are owned by insiders. Comparatively, 28.6% of Gaia shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Spanish Broadcasting System and Gaia, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Spanish Broadcasting System | 0 | 0 | 0 | 0 | 0.00 |
| Gaia | 1 | 0 | 1 | 1 | 2.67 |
Gaia has a consensus target price of $9.00, suggesting a potential upside of 141.29%. Given Gaia’s stronger consensus rating and higher possible upside, analysts plainly believe Gaia is more favorable than Spanish Broadcasting System.
Summary
Spanish Broadcasting System beats Gaia on 8 of the 15 factors compared between the two stocks.
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.
About Gaia
Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.
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