Head-To-Head Comparison: Townsquare Media (NYSE:TSQ) & Netflix (NASDAQ:NFLX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Townsquare Media	4.27%	-47.95%	2.52%
Netflix	24.05%	41.86%	19.52%

Analyst Ratings

This is a breakdown of current recommendations for Townsquare Media and Netflix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Townsquare Media	1	0	2	0	2.33
Netflix	1	13	29	2	2.71

Townsquare Media currently has a consensus target price of $16.50, suggesting a potential upside of 211.32%. Netflix has a consensus target price of $129.68, suggesting a potential upside of 37.38%. Given Townsquare Media’s higher possible upside, research analysts plainly believe Townsquare Media is more favorable than Netflix.

Insider and Institutional Ownership

71.7% of Townsquare Media shares are owned by institutional investors. Comparatively, 80.9% of Netflix shares are owned by institutional investors. 30.5% of Townsquare Media shares are owned by insiders. Comparatively, 1.4% of Netflix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Townsquare Media has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Netflix has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Townsquare Media	$450.98 million	0.19	-$10.93 million	$1.03	5.15
Netflix	$39.00 billion	10.26	$8.71 billion	$2.39	39.49

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

Summary

Netflix beats Townsquare Media on 13 of the 15 factors compared between the two stocks.

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.

About Netflix

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.