Head to Head Comparison: Stagwell (NASDAQ:STGW) and Clear Channel Outdoor (NYSE:CCO)

Clear Channel Outdoor (NYSE:CCO – Get Free Report) and Stagwell (NASDAQ:STGW – Get Free Report) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Clear Channel Outdoor and Stagwell’s net margins, return on equity and return on assets.

Volatility & Risk

Clear Channel Outdoor has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500. Comparatively, Stagwell has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.

Institutional and Insider Ownership

85.5% of Clear Channel Outdoor shares are owned by institutional investors. Comparatively, 35.6% of Stagwell shares are owned by institutional investors. 7.7% of Clear Channel Outdoor shares are owned by insiders. Comparatively, 5.6% of Stagwell shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Clear Channel Outdoor and Stagwell”s gross revenue, earnings per share and valuation.

Stagwell has higher revenue and earnings than Clear Channel Outdoor. Clear Channel Outdoor is trading at a lower price-to-earnings ratio than Stagwell, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Clear Channel Outdoor and Stagwell, as provided by MarketBeat.

Clear Channel Outdoor presently has a consensus price target of $2.31, indicating a potential downside of 2.91%. Stagwell has a consensus price target of $7.96, indicating a potential upside of 31.53%. Given Stagwell’s stronger consensus rating and higher probable upside, analysts plainly believe Stagwell is more favorable than Clear Channel Outdoor.

Summary

Stagwell beats Clear Channel Outdoor on 9 of the 14 factors compared between the two stocks.

About Clear Channel Outdoor

(Get Free Report)

Clear Channel Outdoor Holdings, Inc. operates as an out-of-home advertising company in the United States, Europe, and internationally. It operates through America, Airports, Europe-North, and Other segments. The company provides advertising services through billboards, including bulletins and posters, as well as spectaculars, which are customized display structures with videos, multi-dimensional lettering and figures, mechanical devices, moving parts, and other embellishments; street furniture displays, such as advertising surfaces on bus shelters, information kiosks, news racks, and other public structures; transit displays for rail stations and on various types of vehicles; retail displays; and airport advertising displays. It offers solutions, such as RADARView, an audience and campaign planning tool, which analyzes historical mobile location data; RADARConnect, a campaign amplification solution that delivers ads across mobile and other devices to re-target audience groups exposed to an out-of-home advertisement; RADARProof, a campaign measurement and attribution solutions which analyzes anonymized and/or aggregated data; and RADARSync, a data integration platform that uses customer data across the tools for customized application of solutions to customers' specific audience targets and goals. In addition, the company sells street furniture equipment; provides cleaning and maintenance services; and operates public bike programs, a public bicycle rental program that offers bicycles for rent to the public. The company was formerly known as Eller Media Company and changed its name to Clear Channel Outdoor Holdings, Inc. in August 2005. Clear Channel Outdoor Holdings, Inc. was incorporated in 1995 and is headquartered in San Antonio, Texas.

About Stagwell

(Get Free Report)

Stagwell Inc. provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement. The company also provides audience analysis, and media buying and planning services; and strategic insights and guidance services that offers business content, product, communications, and media strategies. In addition, it offers strategy development, advertising creation, live events, immersive digital experiences, cross platform engagement, and social media content services; and leadership, investor and financial relations, social media, executive positioning and visibility, strategic communication, public relation, and public affair services. Further, the company provides Stagwell Marketing Cloud, a suite of software-as-a-service (SaaS) and data-as-a-service (DaaS) technology solutions, including research and insights, communications technology, advance media platform, and media studios; and technology-driven solutions for in-house marketers. Stagwell Inc. is headquartered in New York, New York.