Beasley Broadcast Group (NASDAQ: BBGI) and Salem Media Group (NASDAQ:SALM) are both small-cap cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Risk & Volatility
Beasley Broadcast Group has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Salem Media Group has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Beasley Broadcast Group pays an annual dividend of $0.18 per share and has a dividend yield of 1.5%. Salem Media Group pays an annual dividend of $0.26 per share and has a dividend yield of 5.7%. Beasley Broadcast Group pays out 7.3% of its earnings in the form of a dividend. Salem Media Group pays out 130.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings and Valuation
This table compares Beasley Broadcast Group and Salem Media Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Beasley Broadcast Group||$136.66 million||2.57||$47.48 million||$2.46||4.96|
|Salem Media Group||$274.32 million||0.44||$8.87 million||$0.20||23.00|
Beasley Broadcast Group has higher earnings, but lower revenue than Salem Media Group. Beasley Broadcast Group is trading at a lower price-to-earnings ratio than Salem Media Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Beasley Broadcast Group and Salem Media Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Beasley Broadcast Group||0||0||0||0||N/A|
|Salem Media Group||0||0||1||0||3.00|
This table compares Beasley Broadcast Group and Salem Media Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Beasley Broadcast Group||25.94%||12.35%||4.05%|
|Salem Media Group||1.97%||5.02%||1.85%|
Institutional and Insider Ownership
14.7% of Beasley Broadcast Group shares are owned by institutional investors. Comparatively, 30.7% of Salem Media Group shares are owned by institutional investors. 61.6% of Beasley Broadcast Group shares are owned by insiders. Comparatively, 60.0% of Salem Media Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Beasley Broadcast Group beats Salem Media Group on 9 of the 14 factors compared between the two stocks.
Beasley Broadcast Group Company Profile
Beasley Broadcast Group, Inc. is a radio broadcasting company. The Company’s primary business is operating radio stations throughout the United States. As of December 31, 2016, the Company owned and operated 63 radio stations in various radio markets, Atlanta and Augusta in Georgia; Boston, Massachusetts; Charlotte, North Carolina; Detroit, Michigan; Fayetteville, North Carolina; Fort Myers-Naples, Florida; Las Vegas, Nevada; Middlesex, New Jersey; Monmouth, New Jersey; Morristown, New Jersey; Philadelphia, Pennsylvania; Tampa-Saint Petersburg, Florida; West Palm Beach-Boca Raton, Florida, and Wilmington, Delaware. The Company operates its radio stations in clusters to capture a range of demographic listener groups.
Salem Media Group Company Profile
Salem Media Group, Inc., formerly Salem Communications Corporation, is a multi-media company specializing in Christian and Conservative content, with media properties consisting of radio broadcasting, digital media, and book, magazine and newsletter publishing. The Company operates through three segments: Broadcast, Digital Media and Publishing. The Company’s broadcasting segment is engaged in the ownership and operation of radio stations in metropolitan markets. The Company’s radio stations carry national and local programming content, as well as national and local advertisers. The Company’s Digital Media segment focuses on Web-based platform designed for audiences interested in Christian and family-themed content and conservative news. The Company’s publishing segment consists of Regnery Publishing, Xulon Press and Salem Publishing. The Company owns and operates approximately 116 radio stations in over 40 markets.
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