Optimum Communications (NYSE:OPTU – Get Free Report) and Beasley Broadcast Group (NASDAQ:BBGI – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.
Analyst Recommendations
This is a breakdown of current ratings for Optimum Communications and Beasley Broadcast Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Optimum Communications | 4 | 5 | 0 | 0 | 1.56 |
| Beasley Broadcast Group | 1 | 1 | 1 | 0 | 2.00 |
Optimum Communications presently has a consensus target price of $0.92, indicating a potential upside of 40.74%. Given Optimum Communications’ higher probable upside, equities analysts plainly believe Optimum Communications is more favorable than Beasley Broadcast Group.
Profitability
This table compares Optimum Communications and Beasley Broadcast Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Optimum Communications | -58.15% | N/A | -0.70% |
| Beasley Broadcast Group | -55.68% | -96.53% | -5.84% |
Valuation & Earnings
This table compares Optimum Communications and Beasley Broadcast Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Optimum Communications | $8.38 billion | 0.02 | -$1.87 billion | ($10.39) | -0.06 |
| Beasley Broadcast Group | $190.74 million | 0.06 | -$196.55 million | ($59.65) | -0.11 |
Beasley Broadcast Group has lower revenue, but higher earnings than Optimum Communications. Beasley Broadcast Group is trading at a lower price-to-earnings ratio than Optimum Communications, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
54.8% of Optimum Communications shares are held by institutional investors. Comparatively, 21.7% of Beasley Broadcast Group shares are held by institutional investors. 43.4% of Optimum Communications shares are held by company insiders. Comparatively, 51.8% of Beasley Broadcast Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Optimum Communications has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Beasley Broadcast Group has a beta of 4.58, indicating that its share price is 358% more volatile than the S&P 500.
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.
About Beasley Broadcast Group
Beasley Broadcast Group, Inc., a multi-platform media company, owns and operates radio stations in the United States. The company offers local and national advertisers integrated marketing solutions across audio, digital, and event platforms. It operates Houston Outlaws, an esports team that competes in the Overwatch League; and an esports team that competes in the Rocket League. Beasley Broadcast Group, Inc. was founded in 1961 and is based in Naples, Florida.
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