Critical Contrast: Gray Media (NYSE:GTN.A) and Cardlytics (NASDAQ:CDLX)

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

Institutional and Insider Ownership

0.3% of Gray Media shares are held by institutional investors. Comparatively, 68.1% of Cardlytics shares are held by institutional investors. 13.3% of Gray Media shares are held by insiders. Comparatively, 5.9% of Cardlytics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Gray Media has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Cardlytics has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gray Media	-0.83%	-1.12%	-0.23%
Cardlytics	-55.92%	-956.56%	-38.39%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gray Media	$3.10 billion	0.20	-$85.00 million	($0.61)	-10.07
Cardlytics	$233.27 million	0.11	-$103.49 million	($18.48)	-0.23

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

Analyst Ratings

This is a summary of recent recommendations for Gray Media and Cardlytics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gray Media	0	0	0	0	0.00
Cardlytics	2	1	0	0	1.33

Cardlytics has a consensus target price of $10.00, suggesting a potential upside of 133.64%. Given Cardlytics’ stronger consensus rating and higher probable upside, analysts plainly believe Cardlytics is more favorable than Gray Media.

Summary

Gray Media beats Cardlytics on 8 of the 13 factors compared between the two stocks.

About Gray Media

Gray Television, Inc., a television broadcast company, owns and operates television stations and digital assets in the United States. As of February 28, 2019, it owned and operated television stations in 91 television markets broadcasting approximately 400 program streams, including approximately 150 channels affiliated with the CBS Network, the NBC Network, the ABC Network, and the FOX Network. The company also broadcasts secondary digital channels affiliated to ABC, CBS, and FOX, as well as channels affiliated with various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, This TV Network, Antenna TV, Telemundo, Cozi, Heroes and Icons, and MOVIES! Network; and local news/weather channels in various markets. In addition, it is also involved in the video program production, marketing, and digital businesses including Raycom Sports, Tupelo-Raycom, and RTM Studios; and production of PowerNation programs and content. 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 1897 and is headquartered in Atlanta, Georgia.

About Cardlytics

Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.