Criteo (NASDAQ:CRTO – Get Free Report) and Cumulus Media (NASDAQ:CMLS – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Volatility and Risk
Criteo has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Cumulus Media has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.
Insider & Institutional Ownership
94.3% of Criteo shares are owned by institutional investors. Comparatively, 48.7% of Cumulus Media shares are owned by institutional investors. 1.5% of Criteo shares are owned by insiders. Comparatively, 11.9% of Cumulus Media shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Criteo and Cumulus Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Criteo | 5.60% | 14.33% | 8.05% |
| Cumulus Media | -18.11% | -30.27% | -5.62% |
Analyst Ratings
This is a summary of current ratings for Criteo and Cumulus Media, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Criteo | 3 | 3 | 6 | 0 | 2.25 |
| Cumulus Media | 0 | 1 | 0 | 0 | 2.00 |
Criteo currently has a consensus price target of $22.65, suggesting a potential upside of 47.17%. Given Criteo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Criteo is more favorable than Cumulus Media.
Valuation & Earnings
This table compares Criteo and Cumulus Media”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Criteo | $1.94 billion | 0.39 | $144.60 million | $1.97 | 7.81 |
| Cumulus Media | $827.08 million | 0.00 | -$117.88 million | ($17.39) | -0.00 |
Criteo has higher revenue and earnings than Cumulus Media. Cumulus Media is trading at a lower price-to-earnings ratio than Criteo, indicating that it is currently the more affordable of the two stocks.
Summary
Criteo beats Cumulus Media on 12 of the 14 factors compared between the two stocks.
About Criteo
Criteo S.A., a technology company, provides marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's Criteo Shopper Graph, which derives clients' proprietary commerce data, such as transaction activity on their digital properties. It also offers Criteo AI Engine solutions, including lookalike finder, recommendation, and predictive bidding algorithms; recommendation algorithms, dynamic creative optimization+, sponsored product placement algorithms, and other product placement algorithms. The company's technology comprises data synchronization, storage, and analysis of distributed computing infrastructure in various geographies, as well as fast data collection and retrieval using multi-layered caching infrastructure; and experimentation platform, an offline/online testing platform to enhance the capabilities and effectiveness of prediction models. In addition, it provides Criteo Marketing Solutions that allow commerce companies to address various marketing goals by engaging their consumers with personalized ads across the web, mobile, and offline store environments; and Criteo Retail Media solutions, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their data and audiences through personalized ads, either on their own digital property or on the open Internet. Further, the company offers real-time advertising technology and trading infrastructure, delivering advanced media buying, selling, and packaging capabilities for media owners, agencies, performance advertisers, and third-party AdTech platforms. It serves companies in digital retail, travel, and classifieds sectors. Criteo S.A. was incorporated in 2005 and is headquartered in Paris, France.
About Cumulus Media
Cumulus Media Inc., an audio-first media company, owns and operates radio stations in the United States. It owns and operates stations in various markets, as well as affiliated stations through Westwood One. The company's content portfolio includes sports, news, talk, and entertainment programming from various brands, including the NFL, the NCAA, the Masters, CNN, AP News, the Academy of Country Music Awards, and other partners. In addition, the company provides digital marketing services, such as email marketing, geo-targeted display and video solutions, website and microsite building, hosting, social media management, reputation and listing management, and search engine marketing and optimization; influencers, audio solutions, research and insights, and live event services; and advertising performance guarantee services. The company serves advertisers through broadcast and on-demand digital, mobile, social, and voice-activated platforms. Cumulus Media Inc. was founded in 2002 and is based in Atlanta, Georgia.
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