Contrasting Entravision Communications (NYSE:EVC) and Saga Communications (NASDAQ:SGA)

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

Risk and Volatility

Entravision Communications has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Saga Communications has a beta of 0.26, suggesting that its stock price is 74% 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%. Saga Communications pays an annual dividend of $1.00 per share and has a dividend yield of 8.3%. Entravision Communications pays out -15.4% of its earnings in the form of a dividend. Saga Communications pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Entravision Communications and Saga Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entravision Communications	-30.16%	-51.15%	-14.52%
Saga Communications	1.91%	1.27%	0.95%

Valuation and Earnings

This table compares Entravision Communications and Saga Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entravision Communications	$420.18 million	0.65	-$148.91 million	($1.30)	-2.32
Saga Communications	$110.35 million	0.70	$3.46 million	$0.05	240.20

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

Analyst Ratings

This is a summary of current recommendations and price targets for Entravision Communications and Saga Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entravision Communications	1	0	0	0	1.00
Saga Communications	1	0	0	0	1.00

Institutional and Insider Ownership

69.5% of Entravision Communications shares are held by institutional investors. Comparatively, 74.3% of Saga Communications shares are held by institutional investors. 8.3% of Entravision Communications shares are held by insiders. Comparatively, 22.4% of Saga Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Saga Communications beats Entravision Communications on 10 of the 13 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 Saga Communications

Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.