GameSquare (NASDAQ:GAME – Get Free Report) and iHeartMedia (NASDAQ:IHRT – Get Free Report) are both small-cap communication services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.
Analyst Ratings
This is a summary of recent ratings for GameSquare and iHeartMedia, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GameSquare | 1 | 1 | 1 | 0 | 2.00 |
| iHeartMedia | 3 | 1 | 0 | 0 | 1.25 |
iHeartMedia has a consensus price target of $4.25, indicating a potential upside of 507.06%. Given iHeartMedia’s higher possible upside, analysts clearly believe iHeartMedia is more favorable than GameSquare.
Volatility and Risk
GameSquare has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, iHeartMedia has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500.
Insider and Institutional Ownership
64.2% of GameSquare shares are owned by institutional investors. Comparatively, 93.9% of iHeartMedia shares are owned by institutional investors. 9.4% of GameSquare shares are owned by insiders. Comparatively, 10.2% of iHeartMedia shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares GameSquare and iHeartMedia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GameSquare | -96.06% | 7.97% | 3.14% |
| iHeartMedia | -5.68% | N/A | -3.29% |
Valuation & Earnings
This table compares GameSquare and iHeartMedia”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GameSquare | $62.78 million | 0.49 | -$40.10 million | ($4.96) | -0.48 |
| iHeartMedia | $3.86 billion | 0.03 | -$472.87 million | ($1.82) | -0.38 |
GameSquare has higher earnings, but lower revenue than iHeartMedia. GameSquare is trading at a lower price-to-earnings ratio than iHeartMedia, indicating that it is currently the more affordable of the two stocks.
About GameSquare
GameSquare Holdings, Inc. is a gaming and esports media and entertainment company that connects brands with gaming audiences through esports teams, content creators, digital media, advertising and live experiences. The company develops and distributes gaming-related content across social media, streaming platforms and other digital channels, while providing marketing and creative services to advertisers and corporate partners. GameSquare’s portfolio has included esports and gaming properties such as FaZe Clan and Complexity Gaming, along with creative, media and talent-focused businesses.
About iHeartMedia
iHeartMedia is an audio media company whose businesses include broadcast radio, digital audio, podcasting, live events and advertising services. Its radio programming spans music, news, talk and sports, while its digital offerings include the iHeartRadio platform and a broad selection of podcasts. The company serves audiences and advertisers primarily in the United States. Its services also include audio advertising and marketing solutions that connect brands with listeners across broadcast and digital channels. iHeartMedia traces its roots to radio broadcasting in San Antonio and operated for many years as Clear Channel Communications.
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