Financial review: iHeartMedia (IHRT) and its peers


iHeartMedia (NASDAQ:IHRT – Get Rating) is one of 23 publicly traded companies in the “broadcasting stations” industry, but how does it stack up against its competitors? We will compare iHeartMedia to similar companies based on its risk strength, valuation, analyst recommendations, earnings, profitability, dividends and institutional ownership.

Insider and Institutional Ownership

80.2% of iHeartMedia’s shares are held by institutional investors. In comparison, 37.3% of the shares of all “Broadcasting Stations” companies are held by institutional investors. 2.9% of iHeartMedia’s stock is held by insiders of the company. By comparison, 25.8% of the shares of all “broadcasting station” companies are held by insiders of the company. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of iHeartMedia and its competitors.

Net margins Return on equity return on assets
iHeartMedia 0.92% 5.40% 0.52%
iHeartMedia Competitors 6.69% -13.99% 1.04%

Analyst Notes

This is a breakdown of recent recommendations for iHeartMedia and its rivals, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
iHeartMedia 1 2 3 0 2.33
iHeartMedia Competitors 138 571 975 26 2.52

iHeartMedia currently has a consensus price target of $20.83, suggesting a potential upside of 153.45%. As a group, the Broadcasting Stations companies have an upside potential of 93.15%. Given iHeartMedia’s possible higher upside, equity research analysts clearly believe that iHeartMedia is more favorable than its rivals.

Volatility and risk

iHeartMedia has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, iHeartMedia’s competitors have a beta of 1.05, indicating that their average stock price is 5% more volatile than the S&P 500.

Valuation and benefits

This chart compares the revenue, earnings per share (EPS), and valuation of iHeartMedia and its rivals.

Gross revenue Net revenue Price/earnings ratio
iHeartMedia $3.56 billion -$159.20 million 35.74
iHeartMedia Competitors $2.41 billion $42.25 million -0.82

iHeartMedia has higher earnings, but lower earnings than its rivals. iHeartMedia trades at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

iHeartMedia’s rivals beat iHeartMedia on 7 of the 13 factors compared.

iHeartMedia Company Profile (Get a rating)

iHeartMedia, Inc. operates as a worldwide media and entertainment company. It operates through three segments: Multiplatform Group, Digital Audio Group and Audio and Multimedia Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes or represents approximately 120 syndicated radio programs and services to approximately 6,400 affiliated radio stations. It also provides real-time information on traffic flows and incidents, as well as weather, sports and news updates via approximately 2,100 radio stations and 170 affiliated television channels, as well as Internet and mobiles. As of December 31, 2021, this segment held 863 radio stations, including 249 AM radio stations and 614 FM radio stations. The Digital Audio Group segment provides podcasts, digital sites, newsletters, digital services and programs; and iHeartRadio, a mobile app and web service for radio stations, digital-only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment is engaged in media representation business. This segment also provides cloud and on-premises broadcast software, such as radio and television automation, music programming, newsroom automation, ad sales management, rework solutions after disaster; and real-time audio recognition technology to approximately 10,000 radio and television stations, cable channels, record labels, advertisers and agencies, as well as media streaming and search services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. iHeartMedia, Inc. is headquartered in San Antonio, Texas.



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