Analyzing Television Broadcasts (OTCMKTS:TVBCY) & iHeartMedia (NASDAQ:IHRT)

Television Broadcasts (OTCMKTS:TVBCY) and iHeartMedia (NASDAQ:IHRT) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Television Broadcasts and iHeartMedia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Television Broadcasts	0	0	0	0	0.00
iHeartMedia	2	2	0	0	1.50

iHeartMedia has a consensus price target of $4.25, suggesting a potential downside of 9.57%. Given iHeartMedia’s stronger consensus rating and higher possible upside, analysts clearly believe iHeartMedia is more favorable than Television Broadcasts.

Profitability

This table compares Television Broadcasts and iHeartMedia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Television Broadcasts	N/A	N/A	N/A
iHeartMedia	-7.28%	-1.63%	-1.45%

Volatility & Risk

Television Broadcasts has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, iHeartMedia has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500.

Valuation and Earnings

This table compares Television Broadcasts and iHeartMedia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Television Broadcasts	$409.49 million	0.37	$7.61 million	N/A	N/A
iHeartMedia	$3.86 billion	0.18	-$472.87 million	($1.84)	-2.55

Television Broadcasts has higher earnings, but lower revenue than iHeartMedia.

Insider & Institutional Ownership

93.9% of iHeartMedia shares are owned by institutional investors. 10.2% of iHeartMedia 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.

Summary

iHeartMedia beats Television Broadcasts on 6 of the 11 factors compared between the two stocks.

About Television Broadcasts

Television Broadcasts Limited, together with its subsidiaries, engages in terrestrial television broadcasting, program production, and other television-related activities. It operates through Hong Kong TV Broadcasting; Over-The-Top (OTT) Streaming; e-Commerce Business; Mainland China Operations; and International Operations segments. The Hong Kong TV Broadcasting segment is involved in the broadcasting of television programmes and commercials on terrestrial TV platforms; production of programmes; operation of online social media platform; and music entertainment, and event and digital marketing activities. The OTT Streaming segment offers OTT services; and operates website portals. The e-Commerce Business segment operates e-Commerce platforms under the names Ztore, Neigbuy, and Big Big. The Mainland China Operations segment co-produces dramas; and distributes television programmes and channels to telecast, video, and media operators in Mainland China. The International Operations segment offers pay television and OTT services to subscribers; and distributes television programs and channels to telecast, video, and media operators in Malaysia, Singapore, and internationally. The company also produces motion pictures for theatrical release and distribution; and produces, sells, and licenses musical works and sound recordings. In addition, it provides artistes consultancy, management, and agency services; programme licensing services; programmes and marketing materials; film licensing and distribution services; agency services on design, production, and exhibition of advertisements, as well as film rights and management services; cultural and art development, software and IT, dealership, and corporate finance services; and satellite and subscription television programs. Further, the company engages in digital new media and trading; online sale of groceries; and property investment activities. The company was incorporated in 1965 and is based in Kowloon, Hong Kong.

About iHeartMedia

iHeartMedia, Inc. operates as an audio media company in the United States and internationally. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and events, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents syndicated radio programs and services to radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web based service for radio stations, digital only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business; and provides scheduling and broadcast software and services. This segment also provides RCS, a cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. The company is headquartered in San Antonio, Texas.