Head-To-Head Analysis: Spanish Broadcasting System (OTCMKTS:SBSAA) vs. Entravision Communications (NYSE:EVC)

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

Insider and Institutional Ownership

69.5% of Entravision Communications shares are owned by institutional investors. 48.3% of Spanish Broadcasting System shares are owned by insiders. Comparatively, 8.5% of Entravision Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Spanish Broadcasting System has a beta of 4.1, meaning that its stock price is 310% more volatile than the S&P 500. Comparatively, Entravision Communications has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spanish Broadcasting System	-4.05%	N/A	-1.46%
Entravision Communications	-3.41%	-25.31%	-4.41%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spanish Broadcasting System	$155.06 million	0.00	$1.66 million	($0.94)	N/A
Entravision Communications	$447.59 million	2.77	-$79.17 million	($0.22)	-61.30

Spanish Broadcasting System has higher earnings, but lower revenue than Entravision Communications. Entravision Communications 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.

Analyst Recommendations

This is a breakdown of recent ratings for Spanish Broadcasting System and Entravision Communications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spanish Broadcasting System	0	0	0	0	0.00
Entravision Communications	1	0	0	0	1.00

Given Spanish Broadcasting System’s higher probable upside, equities analysts plainly believe Spanish Broadcasting System is more favorable than Entravision Communications.

Summary

Spanish Broadcasting System beats Entravision Communications on 6 of the 11 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 Entravision Communications

Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.