Radio One (NASDAQ:UONEK – Get Free Report) and Trade Desk (NASDAQ:TTD – Get Free Report) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Earnings and Valuation
This table compares Radio One and Trade Desk”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Radio One | $374.37 million | 0.03 | -$146.87 million | ($40.90) | -0.06 |
| Trade Desk | $2.99 billion | 2.47 | $443.30 million | $0.69 | 22.72 |
Trade Desk has higher revenue and earnings than Radio One. Radio One is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for Radio One and Trade Desk, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Radio One | 1 | 0 | 0 | 0 | 1.00 |
| Trade Desk | 9 | 26 | 4 | 0 | 1.87 |
Trade Desk has a consensus target price of $18.52, indicating a potential upside of 18.10%. Given Trade Desk’s stronger consensus rating and higher possible upside, analysts plainly believe Trade Desk is more favorable than Radio One.
Profitability
This table compares Radio One and Trade Desk’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Radio One | -52.62% | -77.06% | -3.00% |
| Trade Desk | 11.03% | 14.36% | 6.21% |
Insider and Institutional Ownership
19.7% of Radio One shares are owned by institutional investors. Comparatively, 67.8% of Trade Desk shares are owned by institutional investors. 50.5% of Radio One shares are owned by insiders. Comparatively, 11.7% of Trade Desk shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Radio One has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, Trade Desk has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Summary
Trade Desk beats Radio One on 13 of the 14 factors compared between the two stocks.
About Radio One
Urban One, Inc., formerly known as Radio One, is a multimedia company focused on serving African American and urban audiences in the United States. The company operates radio stations in several major markets and provides music, news, talk, entertainment and community-oriented programming through its audio platforms. Its businesses also include television and digital media. Urban One owns and operates TV One, an entertainment and lifestyle network, and CLEO TV, which offers programming aimed primarily at multicultural women.
About Trade Desk
The Trade Desk, Inc. provides a technology platform that helps advertisers and advertising agencies plan, buy, and measure digital advertising. Its self-service platform uses automated, data-driven tools to help clients purchase advertising inventory across channels such as connected TV, mobile, audio, and display. The company also offers tools for campaign management, audience targeting, measurement, and access to data and advertising inventory. Its platform is designed to help clients manage campaigns across multiple media channels and publishers.
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