Critical Review: Beasley Broadcast Group (BBGI) and Sirius XM (SIRI)

Beasley Broadcast Group (NASDAQ: BBGI) and Sirius XM (NASDAQ:SIRI) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Valuation and Earnings

This table compares Beasley Broadcast Group and Sirius XM’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 $232.18 million 1.31 $87.13 million N/A N/A
Sirius XM $5.43 billion 5.77 $647.90 million $0.20 34.85

Sirius XM has higher revenue and earnings than Beasley Broadcast Group.

Insider and Institutional Ownership

14.2% of Beasley Broadcast Group shares are owned by institutional investors. Comparatively, 19.4% of Sirius XM shares are owned by institutional investors. 61.6% of Beasley Broadcast Group shares are owned by company insiders. Comparatively, 0.8% of Sirius XM shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Beasley Broadcast Group and Sirius XM, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Beasley Broadcast Group 0 0 0 0 N/A
Sirius XM 2 6 9 0 2.41

Sirius XM has a consensus price target of $6.22, suggesting a potential downside of 10.79%. Given Sirius XM’s higher probable upside, analysts plainly believe Sirius XM is more favorable than Beasley Broadcast Group.

Risk and Volatility

Beasley Broadcast Group has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Sirius XM has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Beasley Broadcast Group 32.74% 7.56% 2.91%
Sirius XM 13.26% -76.24% 11.74%

Dividends

Beasley Broadcast Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.8%. Sirius XM pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Sirius XM pays out 20.0% of its earnings in the form of a dividend.

Summary

Sirius XM beats Beasley Broadcast Group on 9 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 12, 2018, it owned and operated 63 stations, including 45 FM and 18 AM stations in 15 large- and mid-size markets. The company was founded in 1961 and is headquartered in Naples, Florida.

Sirius XM Company Profile

Sirius XM Holdings Inc. provides satellite radio services in the United States. The company broadcasts music plus sports, entertainment, comedy, talk, news, traffic, and weather programs, including various music genres ranging from rock, pop and hip-hop to country, dance, jazz, Latin, and classical; live play-by-play sports from principal leagues and colleges; multitude of talk and entertainment channels for various audiences; national, international, and financial news; and limited run channels. It also streams music and non-music channels over the Internet; and offers applications to allow consumers to access its Internet radio service on smartphones, tablets, computers, home devices, and other consumer electronic equipment. In addition, the company distributes satellite radios through the sale and lease of new vehicles; and acquires subscribers through the sale and lease of previously owned vehicles with factory-installed satellite radios. Its satellite radio systems include satellites, terrestrial repeaters, and other satellite facilities; studios; and radios. Further, the company provides satellite television services, which offer music channels on the DISH NETWORK satellite television service as a programming package; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule and scores, and movie listings; real-time traffic services; and real-time weather services. Additionally, it offers location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data services, remote vehicles diagnostics, and stolen or parked vehicle locator services. The company also sells satellite radios directly to consumers through its Website, as well as through automakers and retailers. The company was founded in 1990 and is headquartered in New York, New York. Sirius XM Holdings Inc. is a subsidiary of Liberty Media Corporation.

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