Analyzing Entravision Communications (NYSE:EVC) and Spanish Broadcasting System (OTCMKTS:SBSAA)

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Entravision Communications and Spanish Broadcasting System, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entravision Communications	1	0	0	0	1.00
Spanish Broadcasting System	0	0	0	0	0.00

Profitability

This table compares Entravision Communications and Spanish Broadcasting System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Entravision Communications	-3.41%	-25.31%	-4.41%
Spanish Broadcasting System	-4.05%	N/A	-1.46%

Insider & Institutional Ownership

69.5% of Entravision Communications shares are held by institutional investors. 8.5% of Entravision Communications shares are held by insiders. Comparatively, 48.3% of Spanish Broadcasting System shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Entravision Communications and Spanish Broadcasting System”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entravision Communications	$447.59 million	2.24	-$79.17 million	($0.22)	-49.50
Spanish Broadcasting System	$155.06 million	0.00	$1.66 million	($0.94)	-0.01

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

Risk and Volatility

Entravision Communications has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, Spanish Broadcasting System has a beta of 4.08, meaning that its share price is 308% more volatile than the S&P 500.

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 Spanish Broadcasting System

Spanish Broadcasting System, Inc. operates as a Spanish-language media and entertainment company in the United States. It operates in two segments, Radio and Television. The company produces and distributes Spanish-language content, including radio programs, television shows, and music and live entertainment. It also owns and operates radio stations in the Los Angeles, New York, Puerto Rico, Chicago, Miami, Orlando, Tampa and San Francisco markets; AIRE radio networks with approximately affiliate radio stations; and television stations under the MegaTV brand, as well as has various MegaTV broadcasting outlets under affiliation or programming agreements. In addition, the company produces live concerts and events; and owns bilingual websites, including lamusica.com, Mega.tv, and various station websites that provide content related to Latin music, entertainment, news, and culture, as well as operates the LaMusica mobile app. Further, it offers Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40, and Urbano format genres through its radio stations; and television programs range from televised radio-branded shows to general entertainment programs, such as music, celebrity, news, debate, interviews, and personality-based shows. The company was founded in 1983 and is based in Miami, Florida.