Advantage Solutions (NASDAQ:ADV – Get Free Report) and E.W. Scripps (NASDAQ:SSP – Get Free Report) are both small-cap communication services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.
Institutional & Insider Ownership
49.8% of Advantage Solutions shares are owned by institutional investors. Comparatively, 67.8% of E.W. Scripps shares are owned by institutional investors. 9.7% of Advantage Solutions shares are owned by insiders. Comparatively, 5.2% of E.W. Scripps shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Advantage Solutions and E.W. Scripps’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Advantage Solutions | -7.65% | -48.15% | -9.47% |
| E.W. Scripps | -58.02% | -4.58% | -0.53% |
Volatility & Risk
Valuation and Earnings
This table compares Advantage Solutions and E.W. Scripps”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Advantage Solutions | $3.54 billion | 0.12 | -$227.74 million | ($21.34) | -1.54 |
| E.W. Scripps | $2.15 billion | 0.14 | -$100.88 million | ($13.94) | -0.23 |
E.W. Scripps has lower revenue, but higher earnings than Advantage Solutions. Advantage Solutions is trading at a lower price-to-earnings ratio than E.W. Scripps, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Advantage Solutions and E.W. Scripps, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Advantage Solutions | 2 | 1 | 1 | 0 | 1.75 |
| E.W. Scripps | 1 | 3 | 1 | 0 | 2.00 |
Advantage Solutions presently has a consensus price target of $42.00, indicating a potential upside of 27.54%. E.W. Scripps has a consensus price target of $5.90, indicating a potential upside of 83.80%. Given E.W. Scripps’ stronger consensus rating and higher possible upside, analysts plainly believe E.W. Scripps is more favorable than Advantage Solutions.
Summary
E.W. Scripps beats Advantage Solutions on 9 of the 13 factors compared between the two stocks.
About Advantage Solutions
Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.
About E.W. Scripps
The E.W. Scripps Company, together with its subsidiaries, operates as a media enterprise through a portfolio of local television stations, national news, and entertainment networks in the United States. It operates through Local Media, Scripps Networks, and Other segments. The Local Media segment operates broadcast television stations, which produce news, information, sports, and entertainment content, as well as its related digital operations; runs network, syndicated, and original programming, and local sporting events; and provides core and political advertising services. The Scripps Networks segment offers national television networks through free over-the-air broadcast, cable/satellite, connected TV, and digital distribution. This segment also provides Scripp News, a national news network, which provides politics, entertainment, science, and technology news; Court TV, which showcases live trials; entertainment brands, such as Bounce, Defy TV, Grit, ION Mystery, and Laff; and ION, a national network of broadcast stations and broadcast television spectrum, which distributes programming through Federal Communications Commission-licensed television stations, as well as affiliated TV stations through over-the-air broadcast and pay TV platforms. In addition, it provides content and services through digital platforms, including the Internet, smartphones, and tablets; Nuvyyo, which offers consumers DVR product solutions to watch and record free over-the-air HDTV on connected devices; and Scripps National Spelling Bee, which shows educational programs. The company serves audiences and businesses through cable and satellite service providers. The E.W. Scripps Company was founded in 1878 and is headquartered in Cincinnati, Ohio.
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