Beasley Broadcast Group (NASDAQ:BBGI – Get Free Report) and Optimum Communications (NYSE:OPTU – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
Institutional & Insider Ownership
21.7% of Beasley Broadcast Group shares are held by institutional investors. Comparatively, 54.8% of Optimum Communications shares are held by institutional investors. 51.8% of Beasley Broadcast Group shares are held by company insiders. Comparatively, 43.4% of Optimum Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Beasley Broadcast Group has a beta of 4.58, suggesting that its share price is 358% more volatile than the S&P 500. Comparatively, Optimum Communications has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
Profitability
This table compares Beasley Broadcast Group and Optimum Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Beasley Broadcast Group | -55.68% | -96.53% | -5.84% |
| Optimum Communications | -58.15% | N/A | -0.70% |
Earnings and Valuation
This table compares Beasley Broadcast Group and Optimum Communications”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Beasley Broadcast Group | $190.74 million | 0.08 | -$196.55 million | ($59.65) | -0.13 |
| Optimum Communications | $8.59 billion | 0.02 | -$1.87 billion | ($10.39) | -0.06 |
Beasley Broadcast Group has higher earnings, but lower revenue than Optimum Communications. Beasley Broadcast Group is trading at a lower price-to-earnings ratio than Optimum Communications, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and price targets for Beasley Broadcast Group and Optimum Communications, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beasley Broadcast Group | 1 | 1 | 1 | 0 | 2.00 |
| Optimum Communications | 4 | 5 | 0 | 0 | 1.56 |
Optimum Communications has a consensus target price of $0.92, indicating a potential upside of 52.42%. Given Optimum Communications’ higher probable upside, analysts plainly believe Optimum Communications is more favorable than Beasley Broadcast Group.
About Beasley Broadcast Group
Beasley Broadcast Group, Inc., a multi-platform media company, owns and operates radio stations in the United States. The company offers local and national advertisers integrated marketing solutions across audio, digital, and event platforms. It operates Houston Outlaws, an esports team that competes in the Overwatch League; and an esports team that competes in the Rocket League. Beasley Broadcast Group, Inc. was founded in 1961 and is based in Naples, Florida.
About Optimum Communications
Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.
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