Beasley Broadcast Group (NASDAQ:BBGI) and Gray Media (NYSE:GTN.A) Critical Review

Beasley Broadcast Group (NASDAQ:BBGI) and Gray Media (NYSE:GTN.A) 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 profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

This table compares Beasley Broadcast Group and Gray Media’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beasley Broadcast Group	-95.51%	-27.43%	-3.14%
Gray Media	-3.12%	-3.07%	-0.64%

Earnings and Valuation

This table compares Beasley Broadcast Group and Gray Media”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beasley Broadcast Group	$205.94 million	0.18	-$196.55 million	($105.69)	-0.19
Gray Media	$3.10 billion	0.24	-$85.00 million	($1.53)	-4.71

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

Insider & Institutional Ownership

21.7% of Beasley Broadcast Group shares are held by institutional investors. Comparatively, 0.3% of Gray Media shares are held by institutional investors. 51.8% of Beasley Broadcast Group shares are held by company insiders. Comparatively, 13.3% of Gray Media shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Beasley Broadcast Group has a beta of 4.5, indicating that its share price is 350% more volatile than the S&P 500. Comparatively, Gray Media has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Beasley Broadcast Group and Gray Media, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beasley Broadcast Group	1	0	0	0	1.00
Gray Media	0	0	0	0	0.00

Summary

Gray Media beats Beasley Broadcast Group on 7 of the 12 factors compared between the two stocks.

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.

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.