Entravision Communications (NYSE:EVC) versus Townsquare Media (NYSE:TSQ) Head-To-Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Entravision Communications	-17.69%	-37.01%	-7.13%
Townsquare Media	-2.58%	-13.74%	0.82%

Analyst Recommendations

This is a summary of current ratings for Entravision Communications and Townsquare Media, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entravision Communications	1	0	0	0	1.00
Townsquare Media	1	0	2	0	2.33

Townsquare Media has a consensus target price of $15.50, suggesting a potential upside of 202.85%. Given Townsquare Media’s stronger consensus rating and higher possible upside, analysts clearly believe Townsquare Media is more favorable than Entravision Communications.

Institutional & Insider Ownership

69.5% of Entravision Communications shares are held by institutional investors. Comparatively, 71.7% of Townsquare Media shares are held by institutional investors. 8.3% of Entravision Communications shares are held by company insiders. Comparatively, 30.5% of Townsquare Media shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Entravision Communications has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Townsquare Media has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Dividends

Entravision Communications pays an annual dividend of $0.20 per share and has a dividend yield of 6.6%. Townsquare Media pays an annual dividend of $0.80 per share and has a dividend yield of 15.6%. Entravision Communications pays out -22.7% of its earnings in the form of a dividend. Townsquare Media pays out -112.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Townsquare Media has increased its dividend for 3 consecutive years. Townsquare Media is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Entravision Communications and Townsquare Media”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entravision Communications	$447.59 million	0.62	-$79.17 million	($0.88)	-3.44
Townsquare Media	$427.38 million	0.20	-$9.75 million	($0.71)	-7.21

Townsquare Media has lower revenue, but higher earnings than Entravision Communications. Townsquare Media is trading at a lower price-to-earnings ratio than Entravision Communications, indicating that it is currently the more affordable of the two stocks.

Summary

Townsquare Media beats Entravision Communications on 13 of the 17 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 Townsquare Media

Townsquare Media, Inc. operates as a digital media and marketing solutions company in small and medium-sized businesses. It operates through three segments: Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. The Subscription Digital Marketing Solutions segment offers website design, creation, and development, as well as hosting services; and search engine optimization, online directory optimization, e-commerce solutions, online reputation monitoring, social media management, appointment scheduling, payment and invoice, customer management, and email and SMS marketing services. The Digital Advertising segment provides digital advertising on its owned and operated, digital programmatic advertising, and data analytics and management platform. The Broadcast Advertising segment engages in the sale of advertising on local radio stations to local, regional, and national spot advertisers, as well as national network advertisers. It also owns and operates live events, including concerts, expositions, and other experiential events; and operates local media under the WYRK.com, WJON.com, and NJ101.5.com brands, as well as national music under the XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com brands. The company was formerly known as Regent Communications, Inc. and changed its name to Townsquare Media, Inc. in May 2010. Townsquare Media, Inc. is headquartered in Purchase, New York.