Critical Survey: Radio One (NASDAQ:UONEK) & Sinclair (NASDAQ:SBGI)

Radio One (NASDAQ:UONEK) and Sinclair (NASDAQ:SBGI) are both small-cap communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Radio One and Sinclair, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radio One	1	0	0	0	1.00
Sinclair	2	2	2	0	2.00

Sinclair has a consensus price target of $19.40, suggesting a potential upside of 40.48%. Given Sinclair’s stronger consensus rating and higher possible upside, analysts plainly believe Sinclair is more favorable than Radio One.

Valuation and Earnings

This table compares Radio One and Sinclair”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radio One	$374.37 million	0.05	-$146.87 million	($15.11)	-0.27
Sinclair	$3.17 billion	0.32	-$112.00 million	$0.75	18.41

Sinclair has higher revenue and earnings than Radio One. Radio One is trading at a lower price-to-earnings ratio than Sinclair, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

19.7% of Radio One shares are held by institutional investors. Comparatively, 41.7% of Sinclair shares are held by institutional investors. 50.5% of Radio One shares are held by company insiders. Comparatively, 42.1% of Sinclair shares are held 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.

Volatility & Risk

Radio One has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Sinclair has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares Radio One and Sinclair’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Radio One	-19.04%	-7.13%	-0.43%
Sinclair	1.60%	-16.09%	-0.95%

Summary

Sinclair beats Radio One on 11 of the 14 factors compared between the two stocks.

About Radio One

Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.

About Sinclair

Sinclair, Inc., a media company, provides content on local television stations and digital platforms in the United States. It operates through two segments, Local Media and Tennis. The Local Media segment operates broadcast television stations, original networks, and content; provides free-over-the-air programming and live local sporting events on its stations; distributes its content to multi-channel video programming distributors in exchange for contractual fees; and produces local and original news programs. This segment operates The Nest, a free over-the-air national broadcast TV network; Comet, a science fiction network; CHARGE!, an adventure and action-based network; and TBD, a multiscreen TV network. The Tennis segment offers Tennis Channel, a cable network which includes coverage of tennis' top tournaments and original professional sports, and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com and Pickleballtv. It also provides digital and internet solutions; and technical services, including the design and manufacture of broadcast systems. The company distributes its content through broadcast platforms and third-party platforms that consist of programming provided by third-party networks and syndicators, local news, and other original programming. Sinclair, Inc. was founded in 1971 and is headquartered in Hunt Valley, Maryland.