Critical Survey: Cumulus Media (CMLS) and The Competition

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

Risk & Volatility

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

Earnings & Valuation

This table compares Cumulus Media and its rivals revenue, earnings per share 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 -22.01

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

Institutional & Insider Ownership

61.8% of Cumulus Media shares are held by institutional investors. Comparatively, 32.8% of shares of all “Radio broadcasting stations” companies are held by institutional investors. 3.2% of Cumulus Media shares are held by insiders. Comparatively, 27.5% of shares of all “Radio broadcasting stations” companies are held by 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 Cumulus Media and its rivals’ 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%

Analyst Ratings

This is a summary of current ratings and price targets for Cumulus Media and its rivals, as provided by MarketBeat.com.

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 28.17%. Given Cumulus Media’s stronger consensus rating and higher probable upside, analysts plainly believe Cumulus Media is more favorable than its rivals.

Summary

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

About Cumulus Media

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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