Critical Comparison: Netflix (NASDAQ:NFLX) vs. Radio One (NASDAQ:UONEK)

Radio One (NASDAQ:UONEK) and Netflix (NASDAQ:NFLX) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Radio One and Netflix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radio One	1	0	0	0	1.00
Netflix	1	12	30	2	2.73

Netflix has a consensus price target of $133.93, indicating a potential upside of 26.74%. Given Netflix’s stronger consensus rating and higher possible upside, analysts plainly believe Netflix is more favorable than Radio One.

Volatility & Risk

Radio One has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Netflix has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Radio One	-32.55%	1.85%	0.28%
Netflix	24.05%	41.86%	19.52%

Earnings & Valuation

This table compares Radio One and Netflix”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radio One	$449.67 million	0.09	-$105.39 million	($2.84)	-0.32
Netflix	$43.38 billion	10.32	$8.71 billion	$2.39	44.21

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

Institutional & Insider Ownership

19.7% of Radio One shares are owned by institutional investors. Comparatively, 80.9% of Netflix shares are owned by institutional investors. 50.5% of Radio One shares are owned by insiders. Comparatively, 1.4% of Netflix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Netflix beats Radio One on 14 of the 15 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 Netflix

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.