Educational Development (NASDAQ:EDUC – Get Free Report) and Cumulus Media (NASDAQ:CMLS – Get Free Report) are both small-cap communication services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Valuation and Earnings
This table compares Educational Development and Cumulus Media”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Educational Development | $22.91 million | 0.52 | $2.33 million | $0.23 | 6.04 |
| Cumulus Media | $827.08 million | 0.00 | -$117.88 million | ($17.39) | -0.00 |
Profitability
This table compares Educational Development and Cumulus Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Educational Development | 9.75% | -18.23% | -12.73% |
| Cumulus Media | -18.11% | -30.27% | -5.62% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Educational Development and Cumulus Media, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Educational Development | 1 | 0 | 0 | 0 | 1.00 |
| Cumulus Media | 0 | 1 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
19.6% of Educational Development shares are owned by institutional investors. Comparatively, 48.7% of Cumulus Media shares are owned by institutional investors. 11.9% of Educational Development shares are owned by insiders. Comparatively, 11.9% of Cumulus Media shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Educational Development has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Cumulus Media has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Summary
Educational Development beats Cumulus Media on 8 of the 12 factors compared between the two stocks.
About Educational Development
Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.
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.
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