Charter Communications (NASDAQ:CHTR – Get Free Report) and iHeartMedia (NASDAQ:IHRT – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Volatility and Risk
Charter Communications has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, iHeartMedia has a beta of 2.19, indicating that its stock price is 119% more volatile than the S&P 500.
Valuation & Earnings
This table compares Charter Communications and iHeartMedia”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Charter Communications | $54.77 billion | 0.28 | $4.99 billion | $38.51 | 3.33 |
| iHeartMedia | $3.86 billion | 0.09 | -$472.87 million | ($1.82) | -1.30 |
Charter Communications has higher revenue and earnings than iHeartMedia. iHeartMedia is trading at a lower price-to-earnings ratio than Charter Communications, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Charter Communications and iHeartMedia, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Charter Communications | 6 | 10 | 5 | 0 | 1.95 |
| iHeartMedia | 2 | 1 | 0 | 0 | 1.33 |
Charter Communications presently has a consensus target price of $216.56, indicating a potential upside of 68.96%. iHeartMedia has a consensus target price of $4.25, indicating a potential upside of 80.08%. Given iHeartMedia’s higher possible upside, analysts plainly believe iHeartMedia is more favorable than Charter Communications.
Institutional and Insider Ownership
81.8% of Charter Communications shares are owned by institutional investors. Comparatively, 93.9% of iHeartMedia shares are owned by institutional investors. 1.1% of Charter Communications shares are owned by company insiders. Comparatively, 10.2% of iHeartMedia shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Charter Communications and iHeartMedia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Charter Communications | 9.05% | 23.71% | 3.19% |
| iHeartMedia | -7.18% | N/A | -1.12% |
Summary
Charter Communications beats iHeartMedia on 10 of the 14 factors compared between the two stocks.
About Charter Communications
Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based internet, video, and mobile and voice services; a suite of broadband connectivity services, including fixed internet, WiFi, and mobile; Advanced WiFi services; Spectrum Security Shield; in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their fixed wireless internet experience; out-of-home WiFi; and Spectrum WiFi services. It also offers voice communications services using voice over internet protocol technology; and broadband communications solutions, such as internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. In addition, the company provides mobile services; video programming, static IP and business WiFi, voice, and e-mail and security services; sells local advertising across various platforms for networks, such as TBS, CNN, and ESPN; sells advertising inventory to local sports and news channels; and offers Audience App to create data-driven linear TV campaigns for local advertisers. Further, the company offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports networks and news channels. It serves approximately 32 million customers in 41 states. Charter Communications, Inc.was founded in 1993 and is headquartered in Stamford, Connecticut.
About iHeartMedia
iHeartMedia, Inc. operates as an audio media company in the United States and internationally. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and events, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents syndicated radio programs and services to radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web based service for radio stations, digital only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business; and provides scheduling and broadcast software and services. This segment also provides RCS, a cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. The company is headquartered in San Antonio, Texas.
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