Radio One (NASDAQ:UONE – Get Free Report) and Perion Network (NASDAQ:PERI – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.
Risk and Volatility
Radio One has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Perion Network has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Profitability
This table compares Radio One and Perion Network’s 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% |
| Perion Network | -2.95% | 2.43% | 1.81% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Radio One | $374.37 million | 0.06 | -$146.87 million | ($15.11) | -0.31 |
| Perion Network | $439.93 million | 0.82 | -$7.93 million | ($0.35) | -26.26 |
Perion Network has higher revenue and earnings than Radio One. Perion Network is trading at a lower price-to-earnings ratio than Radio One, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
8.2% of Radio One shares are held by institutional investors. Comparatively, 68.1% of Perion Network shares are held by institutional investors. 47.2% of Radio One shares are held by company insiders. Comparatively, 2.8% of Perion Network shares 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 Ratings
This is a breakdown of recent ratings and target prices for Radio One and Perion Network, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Radio One | 1 | 0 | 0 | 0 | 1.00 |
| Perion Network | 1 | 1 | 4 | 0 | 2.50 |
Perion Network has a consensus target price of $13.88, suggesting a potential upside of 50.98%. Given Perion Network’s stronger consensus rating and higher probable upside, analysts clearly believe Perion Network is more favorable than Radio One.
Summary
Perion Network beats Radio One on 12 of the 14 factors compared between the two stocks.
About Radio One
Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.
About Perion Network
Perion Network Ltd. provides digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. It offers Wildfire, a content monetization platform; search monetization solutions, including website monetization, search mediation, and app monetization; and cross-channel digital advertising software as a service platform. The company also provides supply management platform; demand management platform for campaign planning and design; analytics platform, which provides information and performance insights; creative platform, a robust media platform; and an AI platform that uses machine learning to bring intelligence to the various phases of campaigns. In addition, it offers an actionable performance monitoring platform to support the various phases of campaign management; an online video player and integrated ad server to upload, manage, and stream video content; content monetization system, which integrates ads within the content layouts at the page level. Further, the company provides a publisher management system that provides analytics and performance optimization tools, as well as reports; search-demand management systems; monetization products that integrate and onboards demand vendors; and AI Systems. Additionally, it offers Intelligent HUB (iHUB), which connects the supply and demand sides of the marketplace; and strategic optimization of relevant traits (SORT), a provisional patent technology that eliminates the need for cookies. The company was formerly known as IncrediMail Ltd. and changed its name to Perion Network Ltd. in November 2011. Perion Network Ltd. was incorporated in 1999 and is headquartered in Holon, Israel.
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