Head-To-Head Contrast: Harte Hanks (NASDAQ:HHS) & Saga Communications (NASDAQ:SGA)
by Michael Walen · The Markets DailyHarte Hanks (NASDAQ:HHS – Get Free Report) and Saga Communications (NASDAQ:SGA – Get Free Report) are both small-cap communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.
Profitability
This table compares Harte Hanks and Saga Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Harte Hanks | -3.70% | -30.14% | -6.30% |
| Saga Communications | -8.55% | 3.87% | 2.90% |
Analyst Ratings
This is a breakdown of current ratings and target prices for Harte Hanks and Saga Communications, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Harte Hanks | 1 | 0 | 0 | 0 | 1.00 |
| Saga Communications | 1 | 2 | 0 | 0 | 1.67 |
Institutional and Insider Ownership
33.8% of Harte Hanks shares are owned by institutional investors. Comparatively, 74.3% of Saga Communications shares are owned by institutional investors. 9.6% of Harte Hanks shares are owned by insiders. Comparatively, 23.2% of Saga Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Harte Hanks and Saga Communications”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Harte Hanks | $159.57 million | 0.21 | -$810,000.00 | ($0.76) | -5.86 |
| Saga Communications | $107.11 million | 0.50 | -$7.90 million | ($1.38) | -6.06 |
Harte Hanks has higher revenue and earnings than Saga Communications. Saga Communications is trading at a lower price-to-earnings ratio than Harte Hanks, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Harte Hanks has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Saga Communications has a beta of -0.12, meaning that its share price is 112% less volatile than the S&P 500.
About Harte Hanks
Harte-Hanks, Inc. engages in the provision of marketing solutions. It specializes in consulting, data analytics, creative services, digital and social media, marketing strategy, marketing technology, and other related services. It supports a range of customers in the field of technology, travel and leisure, entertainment, pharmaceuticals, automotive, finance, and retail. The company was founded in 1923 and is headquartered in San Antonio, TX.
About Saga Communications
Saga Communications, Inc., a media company, engages in acquiring, developing, and operating broadcast properties in the United States. The company's radio stations employ various programming formats, including classic hits, country, classic country, hot/soft/urban adult contemporary, oldies, classic rock, rock, and news/talk. It owns and operates FM and AM radio stations, and metro signals serving various markets. Saga Communications, Inc. was incorporated in 1986 and is headquartered in Grosse Pointe Farms, Michigan.