Boston Omaha (NYSE:BOC) & Sinclair (NASDAQ:SBGI) Financial Review

Boston Omaha (NYSE:BOC) and Sinclair (NASDAQ:SBGI) are both small-cap communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Boston Omaha and Sinclair, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Omaha	1	0	0	0	1.00
Sinclair	2	2	2	0	2.00

Sinclair has a consensus price target of $19.40, suggesting a potential upside of 56.58%. Given Sinclair’s stronger consensus rating and higher possible upside, analysts clearly believe Sinclair is more favorable than Boston Omaha.

Institutional and Insider Ownership

60.4% of Boston Omaha shares are held by institutional investors. Comparatively, 41.7% of Sinclair shares are held by institutional investors. 24.9% of Boston Omaha shares are held by insiders. Comparatively, 42.1% of Sinclair shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Boston Omaha has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Sinclair has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Profitability

This table compares Boston Omaha and Sinclair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Omaha	-12.12%	-2.49%	-1.88%
Sinclair	1.60%	-16.09%	-0.95%

Earnings and Valuation

This table compares Boston Omaha and Sinclair”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Omaha	$114.38 million	3.31	-$12.43 million	($0.42)	-29.91
Sinclair	$3.17 billion	0.28	-$112.00 million	$0.75	16.52

Boston Omaha has higher earnings, but lower revenue than Sinclair. Boston Omaha is trading at a lower price-to-earnings ratio than Sinclair, indicating that it is currently the more affordable of the two stocks.

Summary

Sinclair beats Boston Omaha on 10 of the 14 factors compared between the two stocks.

About Boston Omaha

Boston Omaha Corporation, together with its subsidiaries, engages in the outdoor billboard advertising business in the southeast United States. It is also involved in the surety insurance and related brokerage, broadband, and asset management businesses. The company was formerly known as REO Plus, Inc. and changed its name to Boston Omaha Corporation in March 2015. Boston Omaha Corporation was incorporated in 2009 and is headquartered in Omaha, Nebraska.

About Sinclair

Sinclair, Inc., a media company, provides content on local television stations and digital platforms in the United States. It operates through two segments, Local Media and Tennis. The Local Media segment operates broadcast television stations, original networks, and content; provides free-over-the-air programming and live local sporting events on its stations; distributes its content to multi-channel video programming distributors in exchange for contractual fees; and produces local and original news programs. This segment operates The Nest, a free over-the-air national broadcast TV network; Comet, a science fiction network; CHARGE!, an adventure and action-based network; and TBD, a multiscreen TV network. The Tennis segment offers Tennis Channel, a cable network which includes coverage of tennis' top tournaments and original professional sports, and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com and Pickleballtv. It also provides digital and internet solutions; and technical services, including the design and manufacture of broadcast systems. The company distributes its content through broadcast platforms and third-party platforms that consist of programming provided by third-party networks and syndicators, local news, and other original programming. Sinclair, Inc. was founded in 1971 and is headquartered in Hunt Valley, Maryland.