Saga Communications (NASDAQ:SGA) versus Gray Media (NYSE:GTN.A) Head to Head Contrast

Gray Media (NYSE:GTN.A) and Saga Communications (NASDAQ:SGA) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Volatility & Risk

Gray Media has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Saga Communications has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500.

Dividends

Gray Media pays an annual dividend of $0.32 per share and has a dividend yield of 3.8%. Saga Communications pays an annual dividend of $1.00 per share and has a dividend yield of 10.4%. Gray Media pays out -20.9% of its earnings in the form of a dividend. Saga Communications pays out -74.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Saga Communications is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Gray Media and Saga Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gray Media	-3.12%	-3.07%	-0.64%
Saga Communications	-8.24%	3.88%	2.90%

Valuation & Earnings

This table compares Gray Media and Saga Communications”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gray Media	$3.10 billion	0.28	-$85.00 million	($1.53)	-5.46
Saga Communications	$107.11 million	0.57	-$7.90 million	($1.35)	-7.10

Saga Communications has lower revenue, but higher earnings than Gray Media. Saga Communications is trading at a lower price-to-earnings ratio than Gray Media, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Gray Media and Saga Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gray Media	0	0	0	0	0.00
Saga Communications	1	2	0	0	1.67

Institutional and Insider Ownership

0.3% of Gray Media shares are owned by institutional investors. Comparatively, 74.3% of Saga Communications shares are owned by institutional investors. 13.3% of Gray Media shares are owned by company insiders. Comparatively, 22.4% of Saga Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Saga Communications beats Gray Media on 10 of the 14 factors compared between the two stocks.

About Gray Media

Gray Television, Inc., a television broadcast company, owns and operates television stations and digital assets in the United States. As of February 28, 2019, it owned and operated television stations in 91 television markets broadcasting approximately 400 program streams, including approximately 150 channels affiliated with the CBS Network, the NBC Network, the ABC Network, and the FOX Network. The company also broadcasts secondary digital channels affiliated to ABC, CBS, and FOX, as well as channels affiliated with various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, This TV Network, Antenna TV, Telemundo, Cozi, Heroes and Icons, and MOVIES! Network; and local news/weather channels in various markets. In addition, it is also involved in the video program production, marketing, and digital businesses including Raycom Sports, Tupelo-Raycom, and RTM Studios; and production of PowerNation programs and content. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

About Saga Communications

Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.