Beasley Broadcast Group (NASDAQ:BBGI) and Spotify Technology (NYSE:SPOT) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
This table compares Beasley Broadcast Group and Spotify Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Beasley Broadcast Group||4.23%||2.72%||1.09%|
21.8% of Beasley Broadcast Group shares are owned by institutional investors. Comparatively, 45.4% of Spotify Technology shares are owned by institutional investors. 58.7% of Beasley Broadcast Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Beasley Broadcast Group and Spotify Technology’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Beasley Broadcast Group||$257.49 million||0.32||$6.48 million||N/A||N/A|
|Spotify Technology||$6.21 billion||4.29||-$92.11 million||($0.60)||-249.17|
Beasley Broadcast Group has higher earnings, but lower revenue than Spotify Technology.
Risk & Volatility
Beasley Broadcast Group has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Spotify Technology has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.
Beasley Broadcast Group pays an annual dividend of $0.20 per share and has a dividend yield of 6.7%. Spotify Technology does not pay a dividend.
This is a summary of current ratings and recommmendations for Beasley Broadcast Group and Spotify Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Beasley Broadcast Group||0||1||1||0||2.50|
Beasley Broadcast Group currently has a consensus price target of $8.50, indicating a potential upside of 183.33%. Spotify Technology has a consensus price target of $172.33, indicating a potential upside of 15.27%. Given Beasley Broadcast Group’s higher possible upside, equities research analysts plainly believe Beasley Broadcast Group is more favorable than Spotify Technology.
Spotify Technology beats Beasley Broadcast Group on 8 of the 14 factors compared between the two stocks.
Beasley Broadcast Group Company Profile
Beasley Broadcast Group, Inc., a radio broadcasting company, operates radio stations in the United States. As of February 11, 2019, it owned and operated 64 stations, including 46 FM and 18 AM stations in 15 large- and mid-size markets. The company was founded in 1961 and is headquartered in Naples, Florida.
Spotify Technology Company Profile
Spotify Technology S.A., together with its subsidiaries, provides music streaming services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers commercial-free music services to subscribers comprising unlimited online and offline high-quality streaming access to its catalog. The Ad-Supported segment provides ad-supported users with limited on-demand online access to its catalog. As of December 31, 2018, the company's platform included 207 million monthly active users and 96 million premium subscribers in approximately 78 countries and territories. Spotify Technology S.A. was founded in 2006 and is based in Luxembourg City, Luxembourg.
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