Saga Communications (NASDAQ:SGA – Get Free Report) and SPAR Group (NASDAQ:SGRP – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings and price targets for Saga Communications and SPAR Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Saga Communications | 1 | 2 | 0 | 0 | 1.67 |
| SPAR Group | 1 | 0 | 0 | 0 | 1.00 |
Earnings and Valuation
This table compares Saga Communications and SPAR Group”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 | 0.58 | -$7.90 million | ($1.35) | -7.19 |
| SPAR Group | $132.58 million | 0.14 | -$24.63 million | ($1.03) | -0.64 |
Saga Communications has higher earnings, but lower revenue than SPAR Group. Saga Communications is trading at a lower price-to-earnings ratio than SPAR Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
74.3% of Saga Communications shares are owned by institutional investors. Comparatively, 9.6% of SPAR Group shares are owned by institutional investors. 23.2% of Saga Communications shares are owned by insiders. Comparatively, 43.0% of SPAR Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Saga Communications and SPAR Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Saga Communications | -8.24% | 3.88% | 2.90% |
| SPAR Group | -18.51% | -107.74% | -19.90% |
Risk and Volatility
Saga Communications has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500. Comparatively, SPAR Group has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.
Summary
Saga Communications beats SPAR Group on 7 of the 12 factors compared between the two stocks.
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 SPAR Group
SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.
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