Comparing Saga Communications (SGA) & Its Rivals

Saga Communications (NASDAQ:SGA) is one of 257 public companies in the “Media” industry, but how does it compare to its rivals? We will compare Saga Communications to similar businesses based on the strength of its analyst recommendations, risk, dividends, institutional ownership, profitability, valuation and earnings.

Volatility & Risk

Saga Communications has a beta of -0.12, meaning that its share price is 112% less volatile than the S&P 500. Comparatively, Saga Communications’ rivals have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Insider and Institutional Ownership

74.3% of Saga Communications shares are held by institutional investors. Comparatively, 38.1% of shares of all “Media” companies are held by institutional investors. 23.2% of Saga Communications shares are held by insiders. Comparatively, 17.5% of shares of all “Media” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Saga Communications pays an annual dividend of $1.00 per share and has a dividend yield of 14.2%. Saga Communications pays out -41.5% of its earnings in the form of a dividend. As a group, “Media” companies pay a dividend yield of 5.5% and pay out 286.9% of their earnings in the form of a dividend. Saga Communications is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Saga Communications and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Saga Communications	$103.94 million	-$7.90 million	-2.91
Saga Communications Competitors	$3.00 billion	$35.12 million	-3.45

Saga Communications’ rivals have higher revenue and earnings than Saga Communications. Saga Communications is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Saga Communications and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saga Communications	-15.08%	-0.44%	-0.33%
Saga Communications Competitors	-19.22%	-48.93%	-4.92%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Saga Communications and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saga Communications	1	2	0	0	1.67
Saga Communications Competitors	2345	6940	10802	493	2.46

As a group, “Media” companies have a potential upside of 29.12%. Given Saga Communications’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Saga Communications has less favorable growth aspects than its rivals.

Summary

Saga Communications beats its rivals on 8 of the 15 factors compared.

Saga Communications Company Profile

Saga Communications, Inc. is a U.S. broadcasting company that owns and operates AM and FM radio stations. Its stations serve local audiences with programming that includes music, news, talk and sports, while the company sells advertising to businesses seeking to reach listeners in its markets. Founded in 1986 by Edward K. Christian, Saga focuses primarily on radio markets across the United States. In addition to broadcasting, the company offers digital marketing services that complement its advertising business.