Contrasting Salem Media Group (NASDAQ:SALM) & MediaCo (NASDAQ:MDIA)

Salem Media Group (NASDAQ:SALM) and MediaCo (NASDAQ:MDIA) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Risk & Volatility

Salem Media Group has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, MediaCo has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Earnings & Valuation

This table compares Salem Media Group and MediaCo’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Salem Media Group	$266.97 million	0.04	-$3.24 million	($1.68)	-0.24
MediaCo	$32.39 million	1.60	-$47.07 million	($1.81)	-1.10

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

Analyst Ratings

This is a summary of current ratings for Salem Media Group and MediaCo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Salem Media Group	0	0	0	0	N/A
MediaCo	0	0	0	0	N/A

Profitability

This table compares Salem Media Group and MediaCo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Salem Media Group	-17.49%	-8.47%	-2.72%
MediaCo	N/A	N/A	N/A

Institutional and Insider Ownership

10.1% of Salem Media Group shares are held by institutional investors. Comparatively, 64.0% of MediaCo shares are held by institutional investors. 54.6% of Salem Media Group shares are held by company insiders. Comparatively, 2.8% of MediaCo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Salem Media Group beats MediaCo on 6 of the 11 factors compared between the two stocks.

About Salem Media Group

Salem Media Group, Inc. operates as a multimedia company in the United States. It operates through three segments: Broadcast, Digital Media, and Publishing. The company owns and operates 33 FM radio stations and 70 radio stations; offers programs on the Family Talk Christian-themed talk format station on SiriusXM Channel 131; provides programming to Christian and family-themed talk stations, music stations, and news talk stations; places advertising on Christian and talk formatted radio stations, and other commercial radio station formats; and operates Salem Podcast Network, a platform for conservative, political, news, and family-oriented podcasts. It also provides Christian, conservative, investing content, e-commerce, audio and video streaming, and other resources digitally through BibleStudyTools.com, Crosswalk.com, Christianity.com, iBelieve.com, GodTube.com, OnePlace com, GodUpdates.com, CrossCards.com, ChristianHeadlines.com, LightSource.com, CCMmagazine.com,Townhall.com, RedState.com, pjmedia.com, Twitchy.com, HotAir.com, BearingArms.com, as well as mobile applications. In addition, the company publishes digital newsletters, market analysis and non-individualized investment strategies; and operates SermonSearch.com, ChurchStaffing.com, WorshipHouseMedia.com, SermonSpice.com, WorshipHouseKids.com, Preaching.com, ChristianJobs.com, ShiftWorship.com, JourneyBoxMedia.com, Playblackmedia.com, and HyperPixelsMedia.com. Further, it offers publication of conservative, Christian, and history books; Xulon Press, a print-on-demand self-publishing service; and Mill City Press that publishes books, as well as provides digital marketing service. The company was founded in 1974 and is based in Irving, Texas.

About MediaCo

MediaCo Holding Inc. owns and operates radio stations in the United States. The company engages in the operation of WQHT-FM and WBLS-FM radio stations in the New York City area. It also offers digital advertising, and events, which includes sponsorships, ticket sales, licensing, and syndication services. MediaCo Holding Inc. was incorporated in 2019 and is headquartered in New York, New York.