Contrasting Saga Communications (NASDAQ:SGA) & Phoenix New Media (NYSE:FENG)

Phoenix New Media (NYSE:FENG) and Saga Communications (NASDAQ:SGA) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Phoenix New Media and Saga Communications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phoenix New Media	1	0	0	0	1.00
Saga Communications	1	1	0	0	1.50

Volatility and Risk

Phoenix New Media has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500. Comparatively, Saga Communications has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500.

Insider & Institutional Ownership

6.3% of Phoenix New Media shares are owned by institutional investors. Comparatively, 74.3% of Saga Communications shares are owned by institutional investors. 10.9% of Phoenix New Media shares are owned by company insiders. Comparatively, 21.9% of Saga Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Phoenix New Media and Saga Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phoenix New Media	$109.47 million	0.20	$50,000.00	$0.02	89.75
Saga Communications	$107.11 million	0.71	-$7.90 million	($1.22)	-9.68

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

Profitability

This table compares Phoenix New Media and Saga Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phoenix New Media	0.25%	0.18%	0.12%
Saga Communications	-7.37%	4.43%	3.30%

Summary

Saga Communications beats Phoenix New Media on 7 of the 12 factors compared between the two stocks.

About Phoenix New Media

Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.

About Saga Communications

Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.