Critical Review: MediaCo (NASDAQ:MDIA) & Charter Communications (NASDAQ:CHTR)

Charter Communications (NASDAQ:CHTRGet Free Report) and MediaCo (NASDAQ:MDIAGet Free Report) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Risk & Volatility

Charter Communications has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, MediaCo has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Charter Communications and MediaCo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Charter Communications 5 9 5 0 2.00
MediaCo 1 0 0 0 1.00

Charter Communications currently has a consensus target price of $226.88, indicating a potential upside of 49.16%. Given Charter Communications’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Charter Communications is more favorable than MediaCo.

Valuation and Earnings

This table compares Charter Communications and MediaCo”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Charter Communications $54.40 billion 0.33 $4.99 billion $38.51 3.95
MediaCo $139.42 million 0.69 -$69.74 million ($0.83) -1.38

Charter Communications has higher revenue and earnings than MediaCo. MediaCo is trading at a lower price-to-earnings ratio than Charter Communications, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

81.8% of Charter Communications shares are owned by institutional investors. Comparatively, 64.0% of MediaCo shares are owned by institutional investors. 1.1% of Charter Communications shares are owned by insiders. Comparatively, 9.8% of MediaCo shares are owned by 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 MediaCo’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%
MediaCo N/A N/A N/A

Summary

Charter Communications beats MediaCo on 12 of the 14 factors compared between the two stocks.

About Charter Communications

(Get Free Report)

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 MediaCo

(Get Free Report)

MediaCo Holding Inc. owns and operates radio stations in the United States. The company engages in the operation of WQHT-FM and WBLS-FM radio stations in the New York City area. It also offers digital advertising, and events, which includes sponsorships, ticket sales, licensing, and syndication services. MediaCo Holding Inc. was incorporated in 2019 and is headquartered in New York, New York.

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