Financial Contrast: Beasley Broadcast Group (NASDAQ:BBGI) & Trade Desk (NASDAQ:TTD)

Beasley Broadcast Group (NASDAQ:BBGI) and Trade Desk (NASDAQ:TTD) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Earnings & Valuation

This table compares Beasley Broadcast Group and Trade Desk”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beasley Broadcast Group	$205.94 million	0.08	-$196.55 million	($59.65)	-0.14
Trade Desk	$2.90 billion	1.97	$443.30 million	$0.84	14.49

Trade Desk has higher revenue and earnings than Beasley Broadcast Group. Beasley Broadcast Group is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Beasley Broadcast Group and Trade Desk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beasley Broadcast Group	1	1	1	0	2.00
Trade Desk	9	26	4	0	1.87

Trade Desk has a consensus target price of $18.19, suggesting a potential upside of 49.50%. Given Trade Desk’s higher possible upside, analysts clearly believe Trade Desk is more favorable than Beasley Broadcast Group.

Risk & Volatility

Beasley Broadcast Group has a beta of 4.58, suggesting that its stock price is 358% more volatile than the S&P 500. Comparatively, Trade Desk has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Profitability

This table compares Beasley Broadcast Group and Trade Desk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beasley Broadcast Group	-55.68%	-96.53%	-5.84%
Trade Desk	13.61%	16.09%	6.90%

Institutional and Insider Ownership

21.7% of Beasley Broadcast Group shares are held by institutional investors. Comparatively, 67.8% of Trade Desk shares are held by institutional investors. 51.8% of Beasley Broadcast Group shares are held by company insiders. Comparatively, 11.7% of Trade Desk shares are held by company 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.

Summary

Trade Desk beats Beasley Broadcast Group on 11 of the 14 factors compared between the two stocks.

About Beasley Broadcast Group

Beasley Broadcast Group, Inc., a multi-platform media company, owns and operates radio stations in the United States. The company offers local and national advertisers integrated marketing solutions across audio, digital, and event platforms. It operates Houston Outlaws, an esports team that competes in the Overwatch League; and an esports team that competes in the Rocket League. Beasley Broadcast Group, Inc. was founded in 1961 and is based in Naples, Florida.

About Trade Desk

The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.