Head-To-Head Contrast: Cumulus Media (CMLS) vs. Its Rivals

Cumulus Media (NASDAQ: CMLS) is one of 21 publicly-traded companies in the “Radio broadcasting stations” industry, but how does it compare to its competitors? We will compare Cumulus Media to similar companies based on the strength of its dividends, analyst recommendations, valuation, institutional ownership, earnings, risk and profitability.

Institutional and Insider Ownership

61.8% of Cumulus Media shares are owned by institutional investors. Comparatively, 32.8% of shares of all “Radio broadcasting stations” companies are owned by institutional investors. 3.2% of Cumulus Media shares are owned by company insiders. Comparatively, 27.5% of shares of all “Radio broadcasting stations” companies are owned by company 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.

Profitability

This table compares Cumulus Media and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cumulus Media -0.07% -2.82% -0.61%
Cumulus Media Competitors 4.72% -17.37% 0.59%

Volatility and Risk

Cumulus Media has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Cumulus Media’s competitors have a beta of 1.12, suggesting that their average stock price is 12% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cumulus Media and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cumulus Media $816.22 million -$59.72 million -247.00
Cumulus Media Competitors $2.11 billion -$81.47 million -22.00

Cumulus Media’s competitors have higher revenue, but lower earnings than Cumulus Media. Cumulus Media is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for Cumulus Media and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cumulus Media 0 0 2 0 3.00
Cumulus Media Competitors 165 629 963 30 2.48

Cumulus Media presently has a consensus price target of $27.50, suggesting a potential upside of 122.67%. As a group, “Radio broadcasting stations” companies have a potential upside of 28.13%. Given Cumulus Media’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cumulus Media is more favorable than its competitors.

Summary

Cumulus Media beats its competitors on 7 of the 13 factors compared.

Cumulus Media Company Profile

Cumulus Media, Inc. engages in the business of radio broadcasting. It operates through the following segments: Radio Station Group, Westwood One and Corporate and Other. The Radio Station Group segment includes the sale of broadcasting time to local, regional, and national advertisers. The Westwood One segment covers the revenues generated through network advertising. The Corporate and Other segment consists of the overall executive, administrative and support functions for each of the company’s reportable segments, including finance and administration, legal, human resources and information technology functions. The company was founded in 2002 and is headquartered in Atlanta, GA.

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