Head to Head Survey: Urban One (NASDAQ:UONE) versus Spotify Technology (NASDAQ:SPOT)

Urban One (NASDAQ:UONE) and Spotify Technology (NYSE:SPOT) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

0.3% of Urban One shares are held by institutional investors. Comparatively, 45.4% of Spotify Technology shares are held by institutional investors. 78.7% of Urban One shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.



Profitability

This table compares Urban One and Spotify Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urban One 35.83% 146.85% 13.25%
Spotify Technology -1.08% 13.72% 5.62%

Valuation and Earnings

This table compares Urban One and Spotify Technology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Urban One $439.10 million 0.23 $141.00 million N/A N/A
Spotify Technology $6.21 billion 4.37 -$92.11 million ($0.60) -253.83

Urban One has higher earnings, but lower revenue than Spotify Technology.

Analyst Recommendations

This is a summary of current ratings and price targets for Urban One and Spotify Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urban One 0 0 0 0 N/A
Spotify Technology 1 0 3 0 2.50

Spotify Technology has a consensus target price of $172.33, suggesting a potential upside of 13.15%. Given Spotify Technology’s higher probable upside, analysts clearly believe Spotify Technology is more favorable than Urban One.

Risk & Volatility

Urban One has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Spotify Technology has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Urban One Company Profile

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Reach Media, Digital, and Cable Television. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of March 6, 2019, it owned and/or operated 60 broadcast stations under the Radio One tradename located in 15 urban markets. The Reach Media segment operates syndicated programming, including the Tom Joyner Morning Show, the Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment Website, as well as other event related activities. The Digital segment owns iOne Digital, a digital platform serving the African-American community through social content, news, information, and entertainment Websites, including Cassius, Bossip, HipHopWired, and MadameNoire digital platforms and brands. The Cable Television segment operates TV One, an African-American targeted cable television network. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.

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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