iHeartMedia (NASDAQ:IHRT – Get Free Report) and Phoenix New Media (NYSE:FENG – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.
Risk & Volatility
iHeartMedia has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Phoenix New Media has a beta of -0.25, meaning that its share price is 125% less volatile than the S&P 500.
Insider and Institutional Ownership
93.9% of iHeartMedia shares are held by institutional investors. Comparatively, 6.3% of Phoenix New Media shares are held by institutional investors. 8.5% of iHeartMedia shares are held by company insiders. Comparatively, 10.9% of Phoenix New Media shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iHeartMedia | $3.85 billion | 0.15 | -$1.01 billion | ($2.59) | -1.48 |
| Phoenix New Media | $96.40 million | 0.24 | -$7.45 million | ($0.56) | -3.39 |
Phoenix New Media has lower revenue, but higher earnings than iHeartMedia. Phoenix New Media is trading at a lower price-to-earnings ratio than iHeartMedia, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for iHeartMedia and Phoenix New Media, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iHeartMedia | 2 | 2 | 1 | 0 | 1.80 |
| Phoenix New Media | 1 | 0 | 0 | 0 | 1.00 |
iHeartMedia presently has a consensus price target of $4.33, suggesting a potential upside of 12.85%. Given iHeartMedia’s stronger consensus rating and higher possible upside, analysts clearly believe iHeartMedia is more favorable than Phoenix New Media.
Profitability
This table compares iHeartMedia and Phoenix New Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iHeartMedia | -10.37% | -1.63% | 0.50% |
| Phoenix New Media | -6.35% | -4.45% | -2.94% |
Summary
iHeartMedia beats Phoenix New Media on 9 of the 14 factors compared between the two stocks.
About iHeartMedia
iHeartMedia, Inc. operates as an audio media company in the United States and internationally. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and events, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents syndicated radio programs and services to radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web based service for radio stations, digital only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business; and provides scheduling and broadcast software and services. This segment also provides RCS, a cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. The company is headquartered in San Antonio, Texas.
About Phoenix New Media
Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.
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