Critical Analysis: Entravision Communications (NYSE:EVC) & Versant (NASDAQ:VSNT)

Versant (NASDAQ:VSNT) and Entravision Communications (NYSE:EVC) are both communication services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Versant	$6.69 billion	0.76	$930.00 million	$1.99	17.98
Entravision Communications	$447.59 million	2.38	-$79.17 million	($0.22)	-52.65

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Versant	N/A	N/A	N/A
Entravision Communications	-3.41%	-25.31%	-4.41%

Analyst Ratings

This is a summary of current ratings and price targets for Versant and Entravision Communications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Versant	0	6	1	1	2.38
Entravision Communications	1	0	0	0	1.00

Versant presently has a consensus price target of $41.80, indicating a potential upside of 16.79%. Given Versant’s stronger consensus rating and higher probable upside, analysts clearly believe Versant is more favorable than Entravision Communications.

Institutional & Insider Ownership

69.5% of Entravision Communications shares are owned by institutional investors. 0.1% of Versant shares are owned by company insiders. Comparatively, 9.1% of Entravision Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Versant pays an annual dividend of $1.50 per share and has a dividend yield of 4.2%. Entravision Communications pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Versant pays out 75.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Entravision Communications pays out -90.9% of its earnings in the form of a dividend.

Summary

Versant beats Entravision Communications on 12 of the 16 factors compared between the two stocks.

About Versant

Versant Corporation is a provider of data management software. The Company designs, develops, markets and supports database management system products that companies use to solve data management and data integration issues. It also provides related product support, training and consulting services to assist users of the Company’s products in developing and deploying software applications based on its products. The Company’s Versant Object Database product is used primarily by enterprises, which have data management requirements, such as technology providers, telecommunications carriers, Government defense agencies, defense contractors, healthcare companies and companies in the financial services and transportation industries. In addition to its product offerings, to assist users in their development and deployment of applications based on the Versant Object Database, FastObjects and db4o, it offers related professional services.

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.