Financial Analysis: TEGNA (NYSE:TGNA) versus Radio One (NASDAQ:UONEK)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TEGNA	$3.10 billion	1.10	$599.82 million	$2.78	7.61
Radio One	$449.67 million	0.07	-$105.39 million	($3.46)	-0.21

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TEGNA	14.99%	16.20%	6.68%
Radio One	-38.19%	13.04%	2.28%

Institutional and Insider Ownership

92.2% of TEGNA shares are held by institutional investors. Comparatively, 19.7% of Radio One shares are held by institutional investors. 0.5% of TEGNA shares are held by company insiders. Comparatively, 50.5% of Radio One shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

TEGNA has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Radio One has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for TEGNA and Radio One, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TEGNA	0	2	2	0	2.50
Radio One	0	0	0	0	0.00

TEGNA presently has a consensus price target of $19.75, suggesting a potential downside of 6.69%. Given TEGNA’s stronger consensus rating and higher possible upside, research analysts plainly believe TEGNA is more favorable than Radio One.

Summary

TEGNA beats Radio One on 12 of the 14 factors compared between the two stocks.

About TEGNA

TEGNA Inc., a media company, provides broadcast advertising and marketing products and services for businesses. The company operates 47 television stations in 39 markets of the United States that produce local programming, such as news, sports, and entertainment. It offers local and national non-political advertising; political advertising; production of programming from third parties; production of advertising materials; and digital marketing services, as well as advertising services on the stations' Websites, tablets, and mobile products. The company also sells commercial advertising spots of its television stations. In addition, it operates Premion, an over the top local advertising network; Hatch, a centralized 360-degree marketing services agency; and radio broadcast stations. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in McLean, Virginia.

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.