Beasley Broadcast Group (NASDAQ:BBGI – Get Free Report) and Scholastic (NASDAQ:SCHL – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Risk and Volatility
Beasley Broadcast Group has a beta of 4.88, meaning that its stock price is 388% more volatile than the S&P 500. Comparatively, Scholastic has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Profitability
This table compares Beasley Broadcast Group and Scholastic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Beasley Broadcast Group | -55.68% | -96.53% | -5.84% |
| Scholastic | 3.60% | 5.00% | 2.22% |
Valuation & Earnings
This table compares Beasley Broadcast Group and Scholastic”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Beasley Broadcast Group | $205.94 million | 0.05 | -$196.55 million | ($59.65) | -0.10 |
| Scholastic | $1.58 billion | 0.45 | $56.70 million | $1.40 | 27.16 |
Scholastic has higher revenue and earnings than Beasley Broadcast Group. Beasley Broadcast Group is trading at a lower price-to-earnings ratio than Scholastic, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
21.7% of Beasley Broadcast Group shares are held by institutional investors. Comparatively, 82.6% of Scholastic shares are held by institutional investors. 51.8% of Beasley Broadcast Group shares are held by insiders. Comparatively, 12.8% of Scholastic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings for Beasley Broadcast Group and Scholastic, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beasley Broadcast Group | 1 | 1 | 1 | 0 | 2.00 |
| Scholastic | 0 | 3 | 0 | 0 | 2.00 |
Scholastic has a consensus price target of $35.00, indicating a potential downside of 7.94%. Given Scholastic’s higher possible upside, analysts plainly believe Scholastic is more favorable than Beasley Broadcast Group.
Summary
Scholastic beats Beasley Broadcast Group on 10 of the 13 factors compared between the two stocks.
About Beasley Broadcast Group
Beasley Broadcast Group, Inc. is a radio broadcasting and digital media company headquartered in Naples, Florida. The company owns and operates commercial radio stations serving listeners in markets across the United States, with programming focused on music, news, sports, talk and other locally relevant content. In addition to traditional terrestrial radio, Beasley provides digital advertising and marketing services through station websites, mobile platforms, streaming audio and other online offerings.
About Scholastic
Scholastic is a global children’s publishing, education and media company. Its businesses include publishing and distributing children’s books, providing educational materials and classroom resources, and operating book clubs and book fairs that connect students with books. The company’s products and services include fiction and nonfiction books, classroom magazines, curriculum materials and digital learning resources. Scholastic serves schools, educators, families and young readers in the United States and international markets.
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