Contrasting Saga Communications (NASDAQ:SGA) & Harte Hanks (NASDAQ:HHS)

Saga Communications (NASDAQ:SGA) and Harte Hanks (NASDAQ:HHS) are both small-cap communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Valuation & Earnings

This table compares Saga Communications and Harte Hanks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saga Communications	$107.11 million	0.50	-$7.90 million	($1.38)	-6.14
Harte Hanks	$159.57 million	0.21	-$810,000.00	($0.76)	-6.00

Harte Hanks has higher revenue and earnings than Saga Communications. Saga Communications is trading at a lower price-to-earnings ratio than Harte Hanks, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

74.3% of Saga Communications shares are held by institutional investors. Comparatively, 33.8% of Harte Hanks shares are held by institutional investors. 23.2% of Saga Communications shares are held by company insiders. Comparatively, 9.6% of Harte Hanks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Saga Communications and Harte Hanks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saga Communications	1	2	0	0	1.67
Harte Hanks	1	0	0	0	1.00

Risk and Volatility

Saga Communications has a beta of -0.12, meaning that its stock price is 112% less volatile than the S&P 500. Comparatively, Harte Hanks has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500.

Profitability

This table compares Saga Communications and Harte Hanks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saga Communications	-8.55%	3.87%	2.90%
Harte Hanks	-3.70%	-30.14%	-6.30%

About Saga Communications

Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.

About Harte Hanks

Harte-Hanks, Inc. engages in the provision of marketing solutions. It specializes in consulting, data analytics, creative services, digital and social media, marketing strategy, marketing technology, and other related services. It supports a range of customers in the field of technology, travel and leisure, entertainment, pharmaceuticals, automotive, finance, and retail. The company was founded in 1923 and is headquartered in San Antonio, TX.