Entravision Communications (NYSE:EVC – Get Free Report) and USA Today (NYSE:TDAY – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.
Volatility and Risk
Entravision Communications has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, USA Today has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.
Institutional & Insider Ownership
69.5% of Entravision Communications shares are held by institutional investors. Comparatively, 76.7% of USA Today shares are held by institutional investors. 9.1% of Entravision Communications shares are held by insiders. Comparatively, 4.4% of USA Today shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Entravision Communications | 0.62% | 6.98% | 1.17% |
| USA Today | -1.81% | -21.13% | -1.85% |
Valuation and Earnings
This table compares Entravision Communications and USA Today”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Entravision Communications | $447.59 million | 1.47 | -$79.17 million | $0.01 | 710.50 |
| USA Today | $2.30 billion | 0.47 | $1.75 million | ($0.30) | -24.70 |
USA Today has higher revenue and earnings than Entravision Communications. USA Today is trading at a lower price-to-earnings ratio than Entravision Communications, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for Entravision Communications and USA Today, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Entravision Communications | 0 | 1 | 0 | 0 | 2.00 |
| USA Today | 1 | 1 | 2 | 0 | 2.25 |
USA Today has a consensus target price of $9.03, indicating a potential upside of 21.79%. Given USA Today’s stronger consensus rating and higher probable upside, analysts plainly believe USA Today is more favorable than Entravision Communications.
Summary
Entravision Communications beats USA Today on 8 of the 14 factors compared between the two stocks.
About Entravision Communications
Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.
About USA Today
Gannett Co Inc. invests in, owns, and operates local media assets in the United States. The company’s principal products include 125 daily newspapers with total paid circulation of approximately 1.4 million; 314 weekly newspapers with total paid circulation of approximately 315,000 and total free circulation of approximately 1.9 million; 124 shoppers with total circulation of approximately 3.0 million; and 538 locally-focused Websites, including Internet and mobile devices with approximately 224 million page views per month. Its principal products also comprise 2 yellow page directories with a total distribution of approximately 230,000 that cover a population of approximately 411,000 people; 68 business publications; and Propel digital marketing and business services. In addition, the company produces niche publications that address specific local market interests, such as recreation, sports, healthcare, and real estate. Further, it provides print and online products that offer local market news and information on various topics comprising local news and politics, community and regional events, youth sports, opinion and editorial pages, local schools, obituaries, weddings, and police reports, as well as print and digital advertising products, as well as commercial printing and regional business-oriented publications services. The company reaches approximately 20 million people per week; and serves approximately 220,000 business customers. New Media Investment Group Inc. was founded in 1997 and is based in New York, New York.
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