Head-To-Head Review: iHeartMedia (NASDAQ:IHRT) and Radioio (OTCMKTS:RAIO)

iHeartMedia (NASDAQ:IHRT) and Radioio (OTCMKTS:RAIO) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares iHeartMedia and Radioio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iHeartMedia	-7.28%	-1.63%	-1.45%
Radioio	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for iHeartMedia and Radioio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iHeartMedia	2	2	0	0	1.50
Radioio	0	0	0	0	0.00

iHeartMedia presently has a consensus price target of $4.25, indicating a potential upside of 7.87%. Given iHeartMedia’s stronger consensus rating and higher probable upside, research analysts plainly believe iHeartMedia is more favorable than Radioio.

Insider and Institutional Ownership

93.9% of iHeartMedia shares are held by institutional investors. 10.2% of iHeartMedia shares are held by insiders. Comparatively, 40.4% of Radioio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares iHeartMedia and Radioio”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iHeartMedia	$3.86 billion	0.15	-$472.87 million	($1.84)	-2.14
Radioio	N/A	N/A	N/A	N/A	N/A

Radioio has lower revenue, but higher earnings than iHeartMedia.

Risk and Volatility

iHeartMedia has a beta of 2.21, meaning that its share price is 121% more volatile than the S&P 500. Comparatively, Radioio has a beta of -0.98, meaning that its share price is 198% less volatile than the S&P 500.

Summary

iHeartMedia beats Radioio on 5 of the 9 factors compared between the two stocks.

About iHeartMedia

iHeartMedia, Inc. operates as an audio media company in the United States and internationally. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and events, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents syndicated radio programs and services to radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web based service for radio stations, digital only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business; and provides scheduling and broadcast software and services. This segment also provides RCS, a cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. The company is headquartered in San Antonio, Texas.

About Radioio

Radioio, Inc. operates an Internet media platform that provides streamed music to targeted audiences. Radioio broadcasts 140 streaming channels, and offers Internet radio services, including customized channels with various genres of music ranging from high-brow classical to acid rock. The company also provides a background music and messaging ecosystem for large franchise businesses and other vertical markets, such as retail, hospitality, and health and wellness. In addition, it offers Radioio live channels that stream live and pre-recorded talk radio content over the Internet to individual customers via advertising. The company was formerly known as ioWorldMedia, Incorporated and changed its name to Radioio, Inc. December 2013. Radioio, Inc. was incorporated in 1995 and is based in New York, New York.