Cumulus Media (CMLS) versus Its Competitors Financial Survey

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

Insider & Institutional 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 insiders. Comparatively, 27.5% of shares of all “Radio broadcasting stations” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Cumulus Media and its peers’ 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%

Valuation & Earnings

This table compares Cumulus Media and its peers 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 -22.01

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

Volatility and Risk

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 peers have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cumulus Media and its peers, 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 target price of $27.50, indicating 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, equities analysts clearly believe Cumulus Media is more favorable than its peers.

Summary

Cumulus Media beats its peers 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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