Critical Survey: Radio One (UONE) & The Competition

Radio One (NASDAQ:UONE) is one of 257 public companies in the “Media” industry, but how does it weigh in compared to its peers? We will compare Radio One to similar businesses based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.

Volatility & Risk

Radio One has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Radio One’s peers have a beta of 0.97, indicating that their average stock price is 3% less volatile than the S&P 500.

Profitability

This table compares Radio One and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Radio One	-19.04%	-7.13%	-0.43%
Radio One Competitors	-18.35%	-47.68%	-4.81%

Earnings and Valuation

This table compares Radio One and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Radio One	$374.37 million	-$146.87 million	-0.23
Radio One Competitors	$2.97 billion	$35.12 million	0.10

Radio One’s peers have higher revenue and earnings than Radio One. Radio One is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

8.2% of Radio One shares are held by institutional investors. Comparatively, 37.7% of shares of all “Media” companies are held by institutional investors. 47.2% of Radio One shares are held by company insiders. Comparatively, 17.6% of shares of all “Media” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Radio One and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radio One	1	0	0	0	1.00
Radio One Competitors	2331	6929	10776	490	2.46

As a group, “Media” companies have a potential upside of 30.49%. Given Radio One’s peers stronger consensus rating and higher probable upside, analysts plainly believe Radio One has less favorable growth aspects than its peers.

Summary

Radio One peers beat Radio One on 10 of the 13 factors compared.

About Radio One

Radio One, Inc., now known as Urban One, Inc. (NASDAQ: UONE), is a diversified media company focused on serving African American and urban audiences in the United States. The company operates radio stations in select U.S. markets and provides programming that includes music, news, talk, entertainment and community-focused content. Urban One has expanded beyond traditional radio through television, digital media and content production. Its businesses have included TV One, a cable network featuring entertainment, lifestyle and documentary programming; Reach Media, which produces and distributes syndicated radio programs; and One Solution, an integrated marketing and advertising platform serving brands seeking to reach multicultural audiences.