TEGNA (NYSE:TGNA – Get Free Report) and iHeartMedia (NASDAQ:IHRT – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Profitability
This table compares TEGNA and iHeartMedia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TEGNA | 11.97% | 12.50% | 5.33% |
| iHeartMedia | -10.37% | -1.63% | 0.50% |
Valuation and Earnings
This table compares TEGNA and iHeartMedia”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TEGNA | $3.10 billion | 1.01 | $599.82 million | $2.12 | 9.14 |
| iHeartMedia | $3.85 billion | 0.18 | -$1.01 billion | ($2.59) | -1.78 |
TEGNA has higher earnings, but lower revenue than iHeartMedia. iHeartMedia is trading at a lower price-to-earnings ratio than TEGNA, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for TEGNA and iHeartMedia, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TEGNA | 1 | 4 | 1 | 0 | 2.00 |
| iHeartMedia | 1 | 3 | 1 | 0 | 2.00 |
TEGNA currently has a consensus price target of $19.75, suggesting a potential upside of 1.94%. iHeartMedia has a consensus price target of $4.50, suggesting a potential downside of 2.60%. Given TEGNA’s higher probable upside, equities analysts plainly believe TEGNA is more favorable than iHeartMedia.
Insider & Institutional Ownership
92.2% of TEGNA shares are held by institutional investors. Comparatively, 93.9% of iHeartMedia shares are held by institutional investors. 0.5% of TEGNA shares are held by insiders. Comparatively, 6.3% of iHeartMedia shares are held 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.
Risk and Volatility
TEGNA has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, iHeartMedia has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500.
Summary
TEGNA beats iHeartMedia on 8 of the 12 factors compared between the two stocks.
About TEGNA
TEGNA Inc., a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products. The company also sells commercial advertising spots of its television stations. In addition, it operates Premion, an over the top local advertising network; Hatch, a centralized 360-degree marketing services agency; and radio broadcast stations. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in McLean, Virginia.
About iHeartMedia
iHeartMedia, Inc. operates as an audio media company in the United States and internationally. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and events, 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; and provides scheduling and broadcast software and services. 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. The company is headquartered in San Antonio, Texas.
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