Cumulus Media (NASDAQ:CMLS – Get Free Report) and Stagwell (NASDAQ:STGW – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Earnings and Valuation
This table compares Cumulus Media and Stagwell”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cumulus Media | $827.08 million | 0.00 | -$117.88 million | ($17.39) | -0.00 |
| Stagwell | $2.91 billion | 0.75 | $29.10 million | $0.06 | 149.67 |
Stagwell has higher revenue and earnings than Cumulus Media. Cumulus Media is trading at a lower price-to-earnings ratio than Stagwell, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Cumulus Media and Stagwell, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cumulus Media | 0 | 1 | 0 | 0 | 2.00 |
| Stagwell | 0 | 2 | 5 | 1 | 2.88 |
Stagwell has a consensus target price of $10.17, indicating a potential upside of 13.21%. Given Stagwell’s stronger consensus rating and higher probable upside, analysts plainly believe Stagwell is more favorable than Cumulus Media.
Insider and Institutional Ownership
48.7% of Cumulus Media shares are held by institutional investors. Comparatively, 35.6% of Stagwell shares are held by institutional investors. 11.9% of Cumulus Media shares are held by company insiders. Comparatively, 11.2% of Stagwell shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Cumulus Media and Stagwell’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cumulus Media | -18.11% | -30.27% | -5.62% |
| Stagwell | 0.53% | 27.30% | 4.77% |
Volatility & Risk
Cumulus Media has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Stagwell has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
Summary
Stagwell beats Cumulus Media on 13 of the 15 factors compared between the two stocks.
About Cumulus Media
Cumulus Media Inc., an audio-first media company, owns and operates radio stations in the United States. It owns and operates stations in various markets, as well as affiliated stations through Westwood One. The company's content portfolio includes sports, news, talk, and entertainment programming from various brands, including the NFL, the NCAA, the Masters, CNN, AP News, the Academy of Country Music Awards, and other partners. In addition, the company provides digital marketing services, such as email marketing, geo-targeted display and video solutions, website and microsite building, hosting, social media management, reputation and listing management, and search engine marketing and optimization; influencers, audio solutions, research and insights, and live event services; and advertising performance guarantee services. The company serves advertisers through broadcast and on-demand digital, mobile, social, and voice-activated platforms. Cumulus Media Inc. was founded in 2002 and is based in Atlanta, Georgia.
About Stagwell
Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.
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