Critical Survey: Gray Media (NYSE:GTN.A) versus fuboTV (NYSE:FUBO)

Gray Media (NYSE:GTN.A) and fuboTV (NYSE:FUBO) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

0.3% of Gray Media shares are held by institutional investors. Comparatively, 39.3% of fuboTV shares are held by institutional investors. 13.3% of Gray Media shares are held by company insiders. Comparatively, 5.3% of fuboTV shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Gray Media and fuboTV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gray Media	2.81%	5.50%	1.17%
fuboTV	7.61%	-6.66%	-1.93%

Risk and Volatility

Gray Media has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, fuboTV has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Gray Media and fuboTV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gray Media	0	0	0	0	0.00
fuboTV	1	3	2	1	2.43

fuboTV has a consensus target price of $4.63, indicating a potential upside of 70.66%. Given fuboTV’s stronger consensus rating and higher possible upside, analysts clearly believe fuboTV is more favorable than Gray Media.

Valuation and Earnings

This table compares Gray Media and fuboTV”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gray Media	$3.64 billion	0.26	$375.00 million	$1.51	6.21
fuboTV	$377.20 million	2.46	-$18.87 million	$0.36	7.53

Gray Media has higher revenue and earnings than fuboTV. Gray Media is trading at a lower price-to-earnings ratio than fuboTV, indicating that it is currently the more affordable of the two stocks.

Summary

fuboTV beats Gray Media on 8 of the 15 factors compared between the two stocks.

About Gray Media

Gray Television, Inc., a television broadcast company, owns and operates television stations and digital assets in the United States. As of February 28, 2019, it owned and operated television stations in 91 television markets broadcasting approximately 400 program streams, including approximately 150 channels affiliated with the CBS Network, the NBC Network, the ABC Network, and the FOX Network. The company also broadcasts secondary digital channels affiliated to ABC, CBS, and FOX, as well as channels affiliated with various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, This TV Network, Antenna TV, Telemundo, Cozi, Heroes and Icons, and MOVIES! Network; and local news/weather channels in various markets. In addition, it is also involved in the video program production, marketing, and digital businesses including Raycom Sports, Tupelo-Raycom, and RTM Studios; and production of PowerNation programs and content. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

About fuboTV

fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.