Optimum Communications (NYSE:OPTU – Get Free Report) and Radio One (NASDAQ:UONE – Get Free Report) 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 institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Volatility & Risk
Optimum Communications has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Radio One has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Valuation and Earnings
This table compares Optimum Communications and Radio One”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Optimum Communications | $8.59 billion | 0.03 | -$1.87 billion | ($10.39) | -0.10 |
| Radio One | $374.37 million | 0.05 | -$146.87 million | ($15.11) | -0.28 |
Radio One has lower revenue, but higher earnings than Optimum Communications. Radio One is trading at a lower price-to-earnings ratio than Optimum Communications, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for Optimum Communications and Radio One, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Optimum Communications | 4 | 5 | 0 | 0 | 1.56 |
| Radio One | 1 | 0 | 0 | 0 | 1.00 |
Optimum Communications presently has a consensus target price of $0.92, suggesting a potential downside of 7.31%. Given Optimum Communications’ stronger consensus rating and higher possible upside, equities analysts clearly believe Optimum Communications is more favorable than Radio One.
Institutional & Insider Ownership
54.8% of Optimum Communications shares are held by institutional investors. Comparatively, 8.2% of Radio One shares are held by institutional investors. 43.4% of Optimum Communications shares are held by company insiders. Comparatively, 47.2% of Radio One shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Optimum Communications and Radio One’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Optimum Communications | -58.15% | N/A | -0.70% |
| Radio One | -19.04% | -7.13% | -0.43% |
Summary
Optimum Communications beats Radio One on 8 of the 13 factors compared between the two stocks.
About Optimum Communications
Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.
About Radio One
Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.
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