fuboTV (NYSE:FUBO) vs. Townsquare Media (NYSE:TSQ) Financial Analysis

fuboTV (NYSE:FUBO) and Townsquare Media (NYSE:TSQ) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares fuboTV and Townsquare Media’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
fuboTV	7.61%	-6.66%	-1.93%
Townsquare Media	4.27%	-47.95%	2.52%

Insider and Institutional Ownership

39.3% of fuboTV shares are held by institutional investors. Comparatively, 71.7% of Townsquare Media shares are held by institutional investors. 5.3% of fuboTV shares are held by insiders. Comparatively, 30.5% of Townsquare Media shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares fuboTV and Townsquare Media”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
fuboTV	$377.20 million	2.39	-$18.87 million	$0.36	7.32
Townsquare Media	$450.98 million	0.20	-$10.93 million	$1.03	5.34

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

Volatility & Risk

fuboTV has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Townsquare Media has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for fuboTV and Townsquare Media, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
fuboTV	1	2	2	1	2.50
Townsquare Media	1	0	2	0	2.33

fuboTV currently has a consensus target price of $4.58, indicating a potential upside of 73.94%. Townsquare Media has a consensus target price of $16.50, indicating a potential upside of 200.00%. Given Townsquare Media’s higher probable upside, analysts plainly believe Townsquare Media is more favorable than fuboTV.

About fuboTV

fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.

About Townsquare Media

Townsquare Media, Inc. operates as a digital media and marketing solutions company in small and medium-sized businesses. It operates through three segments: Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. The Subscription Digital Marketing Solutions segment offers website design, creation, and development, as well as hosting services; and search engine optimization, online directory optimization, e-commerce solutions, online reputation monitoring, social media management, appointment scheduling, payment and invoice, customer management, and email and SMS marketing services. The Digital Advertising segment provides digital advertising on its owned and operated, digital programmatic advertising, and data analytics and management platform. The Broadcast Advertising segment engages in the sale of advertising on local radio stations to local, regional, and national spot advertisers, as well as national network advertisers. It also owns and operates live events, including concerts, expositions, and other experiential events; and operates local media under the WYRK.com, WJON.com, and NJ101.5.com brands, as well as national music under the XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com brands. The company was formerly known as Regent Communications, Inc. and changed its name to Townsquare Media, Inc. in May 2010. Townsquare Media, Inc. is headquartered in Purchase, New York.