Cumulus Media (NASDAQ:CMLS – Get Free Report) and Optimum Communications (NYSE:OPTU – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Volatility & Risk
Cumulus Media has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Optimum Communications has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
Earnings & Valuation
This table compares Cumulus Media and Optimum Communications”s 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 |
| Optimum Communications | $8.59 billion | 0.03 | -$1.87 billion | ($10.39) | -0.09 |
Cumulus Media has higher earnings, but lower revenue than Optimum Communications. Optimum Communications is trading at a lower price-to-earnings ratio than Cumulus Media, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cumulus Media and Optimum Communications’ 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% |
| Optimum Communications | -58.15% | N/A | -0.70% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Cumulus Media and Optimum Communications, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cumulus Media | 0 | 1 | 0 | 0 | 2.00 |
| Optimum Communications | 4 | 5 | 0 | 0 | 1.56 |
Optimum Communications has a consensus target price of $0.92, suggesting a potential downside of 3.35%. Given Optimum Communications’ higher probable upside, analysts clearly believe Optimum Communications is more favorable than Cumulus Media.
Insider and Institutional Ownership
48.7% of Cumulus Media shares are held by institutional investors. Comparatively, 54.8% of Optimum Communications shares are held by institutional investors. 11.9% of Cumulus Media shares are held by company insiders. Comparatively, 43.4% of Optimum Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Optimum Communications beats Cumulus Media on 9 of the 13 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 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.
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