MediaCo (NASDAQ:MDIA) & Gray Media (NYSE:GTN) Critical Survey

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

Valuation and Earnings

This table compares Gray Media and MediaCo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gray Media	$3.10 billion	0.18	-$85.00 million	($0.61)	-8.76
MediaCo	$136.69 million	0.57	-$68.65 million	($0.84)	-1.13

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

Profitability

This table compares Gray Media and MediaCo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gray Media	-3.12%	-3.07%	-0.64%
MediaCo	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Gray Media and MediaCo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gray Media	1	2	3	0	2.33
MediaCo	1	0	0	0	1.00

Gray Media currently has a consensus target price of $7.88, suggesting a potential upside of 47.44%. Given Gray Media’s stronger consensus rating and higher probable upside, research analysts clearly believe Gray Media is more favorable than MediaCo.

Insider and Institutional Ownership

78.6% of Gray Media shares are owned by institutional investors. Comparatively, 64.0% of MediaCo shares are owned by institutional investors. 8.9% of Gray Media shares are owned by company insiders. Comparatively, 9.8% of MediaCo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

MediaCo beats Gray Media on 7 of the 13 factors compared between the two stocks.

About Gray Media

Gray Television, Inc., a television broadcasting company, owns and/or operates television stations and digital assets in the United States. It also broadcasts secondary digital channels affiliated to ABC, CBS, NBC, and FOX, as well as various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, Circle, Telemundo, THE365, and Outlaw; and local news/weather channels in various markets. It owns and operates television stations and digital assets that serve television markets in the United States. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.

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.