Contrasting Spanish Broadcasting System (OTCMKTS:SBSAA) and TEGNA (NYSE:TGNA)

Spanish Broadcasting System (OTCMKTS:SBSAA) and TEGNA (NYSE:TGNA) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Insider & Institutional Ownership

92.2% of TEGNA shares are held by institutional investors. 48.3% of Spanish Broadcasting System shares are held by insiders. Comparatively, 0.5% of TEGNA shares are held 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for Spanish Broadcasting System and TEGNA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spanish Broadcasting System	0	0	0	0	0.00
TEGNA	0	2	2	0	2.50

TEGNA has a consensus target price of $19.75, suggesting a potential downside of 2.64%. Given TEGNA’s stronger consensus rating and higher probable upside, analysts clearly believe TEGNA is more favorable than Spanish Broadcasting System.

Volatility & Risk

Spanish Broadcasting System has a beta of 5.23, indicating that its stock price is 423% more volatile than the S&P 500. Comparatively, TEGNA has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Earnings & Valuation

This table compares Spanish Broadcasting System and TEGNA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spanish Broadcasting System	$155.06 million	0.00	$1.66 million	$0.17	0.41
TEGNA	$3.10 billion	1.05	$599.82 million	$2.78	7.30

TEGNA has higher revenue and earnings than Spanish Broadcasting System. Spanish Broadcasting System is trading at a lower price-to-earnings ratio than TEGNA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Spanish Broadcasting System and TEGNA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spanish Broadcasting System	-4.51%	-7.23%	-1.67%
TEGNA	14.99%	16.20%	6.68%

Summary

TEGNA beats Spanish Broadcasting System on 12 of the 14 factors compared between the two stocks.

About Spanish Broadcasting System

Spanish Broadcasting System, Inc. operates as a Spanish-language media and entertainment company in the United States. It operates in two segments, Radio and Television. The company produces and distributes Spanish-language content, including radio programs, television shows, and music and live entertainment. It also owns and operates radio stations in the Los Angeles, New York, Puerto Rico, Chicago, Miami, Orlando, Tampa and San Francisco markets; AIRE radio networks with approximately affiliate radio stations; and television stations under the MegaTV brand, as well as has various MegaTV broadcasting outlets under affiliation or programming agreements. In addition, the company produces live concerts and events; and owns bilingual websites, including lamusica.com, Mega.tv, and various station websites that provide content related to Latin music, entertainment, news, and culture, as well as operates the LaMusica mobile app. Further, it offers Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40, and Urbano format genres through its radio stations; and television programs range from televised radio-branded shows to general entertainment programs, such as music, celebrity, news, debate, interviews, and personality-based shows. The company was founded in 1983 and is based in Miami, Florida.

About TEGNA

TEGNA Inc., a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products. The company also sells commercial advertising spots of its television stations. In addition, it operates Premion, an over the top local advertising network; Hatch, a centralized 360-degree marketing services agency; and radio broadcast stations. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in McLean, Virginia.