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

Dividends

Townsquare Media pays an annual dividend of $0.30 per share and has a dividend yield of 4.7%. Emmis Communications does not pay a dividend. Townsquare Media pays out 40.5% of its earnings in the form of a dividend.

Risk & Volatility

Townsquare Media has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Emmis Communications has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Townsquare Media 0 1 3 0 2.75
Emmis Communications 0 0 0 0 N/A

Townsquare Media currently has a consensus target price of $10.00, indicating a potential upside of 58.23%. Given Townsquare Media’s higher possible upside, research analysts plainly believe Townsquare Media is more favorable than Emmis Communications.

Insider & Institutional Ownership

42.7% of Townsquare Media shares are owned by institutional investors. Comparatively, 35.2% of Emmis Communications shares are owned by institutional investors. 26.7% of Townsquare Media shares are owned by company insiders. Comparatively, 32.3% of Emmis Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Townsquare Media and Emmis Communications’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Townsquare Media $507.43 million 0.24 -$10.27 million $0.74 8.54
Emmis Communications $148.49 million 0.36 $82.12 million N/A N/A

Emmis Communications has lower revenue, but higher earnings than Townsquare Media.

Profitability

This table compares Townsquare Media and Emmis Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Townsquare Media -9.68% 6.09% 2.16%
Emmis Communications 28.32% 41.04% 13.74%

About Townsquare Media

Townsquare Media, Inc. operates as a radio, digital media, entertainment, and digital marketing solutions company in small and mid-sized markets. It operates through two segments, Local Marketing Solutions and Entertainment. The Local Marketing Solutions segment provides broadcast and digital solutions to advertisers and businesses through its radio stations, Websites, radio stations' online streams, and mobile applications. It also offers digital marketing solutions, such as traditional and mobile enabled Website development and hosting services, e-commerce platforms, search engine and online directory optimization services, online reputation management, and social media management services under the Townsquare Interactive brand; and e-commerce products to consumers and advertisers through its proprietary deal and auction platform. As of December 31, 2017, this segment owned and operated 317 radio stations and approximately 325 Websites in 67 markets in the United States. The Entertainment segment creates, promotes, and produces live events, including festivals, fairs, concerts, expositions, and other experiential events. This segment also offer event production services to third parties; and digital advertising services, as well as owns a proprietary ticketing platform. In addition, it owns and operates a portfolio of 9 music and entertainment based national Websites. The company was formerly known as Regent Communications, Inc. and changed its name to Townsquare Media, Inc. in May 2010. Townsquare Media, Inc. was founded in 1996 and is headquartered in Greenwich, Connecticut.

About Emmis Communications

Emmis Communications Corporation, a diversified media company, engages in radio broadcasting activities in the United States. The company operates in three segments: Radio, Publishing, and Corporate & Emerging Technologies. It operates 11 FM and 3 AM radio stations in New York, Los Angeles, Indianapolis, and Austin, as well as publishes Indianapolis monthly magazine. The company also develops and licenses TagStation, a cloud-based software platform that allows a broadcaster to manage album art, meta data, and enhanced advertising on its various broadcasts; and develops NextRadio, a smartphone application that marries over-the-air FM radio broadcasts with visual and interactive features on smartphones. In addition, it provides Dial Report that offers radio advertising buyers and sellers big data analytics derived from radio station network, smartphone usage, location-based data, listening data, and demographic and behavioral attributes; and engages in dynamic pricing business. Emmis Communications Corporation was founded in 1981 and is based in Indianapolis, Indiana.

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