Head-To-Head Analysis: MediaCo (NASDAQ:MDIA) versus Optimum Communications (NYSE:OPTU)

Optimum Communications (NYSE:OPTU) and MediaCo (NASDAQ:MDIA) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Risk and Volatility

Optimum Communications has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, MediaCo has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Earnings & Valuation

This table compares Optimum Communications and MediaCo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optimum Communications	$8.59 billion	0.02	-$1.87 billion	($10.39)	-0.07
MediaCo	$139.42 million	0.63	-$69.74 million	($0.83)	-1.27

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

Insider and Institutional Ownership

54.8% of Optimum Communications shares are owned by institutional investors. Comparatively, 64.0% of MediaCo shares are owned by institutional investors. 43.4% of Optimum Communications shares are owned by insiders. Comparatively, 9.8% of MediaCo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Optimum Communications and MediaCo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optimum Communications	4	5	0	0	1.56
MediaCo	1	0	0	0	1.00

Optimum Communications currently has a consensus price target of $0.92, indicating a potential upside of 26.38%. Given Optimum Communications’ stronger consensus rating and higher possible upside, research analysts clearly believe Optimum Communications is more favorable than MediaCo.

Profitability

This table compares Optimum Communications and MediaCo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Optimum Communications	-58.15%	N/A	-0.70%
MediaCo	N/A	N/A	N/A

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.

About MediaCo

MediaCo Holding Inc. owns and operates radio stations in the United States. The company engages in the operation of WQHT-FM and WBLS-FM radio stations in the New York City area. It also offers digital advertising, and events, which includes sponsorships, ticket sales, licensing, and syndication services. MediaCo Holding Inc. was incorporated in 2019 and is headquartered in New York, New York.