Head-To-Head Review: Optimum Communications (NYSE:OPTU) and Beasley Broadcast Group (NASDAQ:BBGI)

Optimum Communications (NYSE:OPTU) and Beasley Broadcast Group (NASDAQ:BBGI) are both small-cap communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares Optimum Communications and Beasley Broadcast Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Optimum Communications	-58.15%	N/A	-0.70%
Beasley Broadcast Group	-55.68%	-96.53%	-5.84%

Valuation and Earnings

This table compares Optimum Communications and Beasley Broadcast Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optimum Communications	$8.59 billion	0.02	-$1.87 billion	($10.39)	-0.06
Beasley Broadcast Group	$190.74 million	0.08	-$196.55 million	($59.65)	-0.13

Beasley Broadcast Group has lower revenue, but higher earnings than Optimum Communications. Beasley Broadcast Group is trading at a lower price-to-earnings ratio than Optimum Communications, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

54.8% of Optimum Communications shares are owned by institutional investors. Comparatively, 21.7% of Beasley Broadcast Group shares are owned by institutional investors. 43.4% of Optimum Communications shares are owned by insiders. Comparatively, 51.8% of Beasley Broadcast Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Optimum Communications has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Beasley Broadcast Group has a beta of 4.58, meaning that its share price is 358% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Optimum Communications and Beasley Broadcast Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optimum Communications	4	5	0	0	1.56
Beasley Broadcast Group	1	1	1	0	2.00

Optimum Communications presently has a consensus target price of $0.92, indicating a potential upside of 52.42%. Given Optimum Communications’ higher possible upside, equities analysts clearly believe Optimum Communications is more favorable than Beasley Broadcast Group.

About Optimum Communications

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.

About Beasley Broadcast Group

Beasley Broadcast Group, Inc., a multi-platform media company, owns and operates radio stations in the United States. The company offers local and national advertisers integrated marketing solutions across audio, digital, and event platforms. It operates Houston Outlaws, an esports team that competes in the Overwatch League; and an esports team that competes in the Rocket League. Beasley Broadcast Group, Inc. was founded in 1961 and is based in Naples, Florida.