Contrasting Gray Media (NYSE:GTN) and Radio One (NASDAQ:UONEK)

Gray Media (NYSE:GTN) and Radio One (NASDAQ:UONEK) 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 institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Risk & Volatility

Gray Media has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Radio One has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

Insider and Institutional Ownership

78.6% of Gray Media shares are held by institutional investors. Comparatively, 19.7% of Radio One shares are held by institutional investors. 9.0% of Gray Media shares are held by company insiders. Comparatively, 50.5% of Radio One shares are held 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Gray Media and Radio One, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gray Media	1	2	3	0	2.33
Radio One	1	0	0	0	1.00

Gray Media currently has a consensus price target of $7.88, indicating a potential upside of 103.33%. Given Gray Media’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gray Media is more favorable than Radio One.

Valuation and Earnings

This table compares Gray Media and Radio One”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gray Media	$3.10 billion	0.13	-$85.00 million	($1.53)	-2.53
Radio One	$374.37 million	0.06	-$146.87 million	($30.93)	-0.16

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

Profitability

This table compares Gray Media and Radio One’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gray Media	-3.12%	-3.07%	-0.64%
Radio One	-38.41%	32.35%	2.58%

Summary

Gray Media beats Radio One on 10 of the 14 factors compared between the two stocks.

About Gray Media

Gray Television, Inc., a television broadcasting company, owns and/or operates television stations and digital assets in the United States. It also broadcasts secondary digital channels affiliated to ABC, CBS, NBC, and FOX, as well as various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, Circle, Telemundo, THE365, and Outlaw; and local news/weather channels in various markets. It owns and operates television stations and digital assets that serve television markets in the United States. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.

About Radio One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.