Financial Review: Clear Channel Outdoor (NYSE:CCO) & System1 (NYSE:SST)

System1 (NYSE:SST – Get Free Report) and Clear Channel Outdoor (NYSE:CCO – Get Free Report) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

System1 has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Clear Channel Outdoor has a beta of 2.3, indicating that its stock price is 130% more volatile than the S&P 500.

Institutional & Insider Ownership

87.5% of System1 shares are held by institutional investors. Comparatively, 85.5% of Clear Channel Outdoor shares are held by institutional investors. 13.2% of System1 shares are held by insiders. Comparatively, 7.7% of Clear Channel Outdoor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares System1 and Clear Channel Outdoor”s revenue, earnings per share and valuation.

Clear Channel Outdoor has higher revenue and earnings than System1. System1 is trading at a lower price-to-earnings ratio than Clear Channel Outdoor, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares System1 and Clear Channel Outdoor’s net margins, return on equity and return on assets.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for System1 and Clear Channel Outdoor, as provided by MarketBeat.com.

System1 currently has a consensus price target of $10.00, suggesting a potential upside of 486.51%. Clear Channel Outdoor has a consensus price target of $2.31, suggesting a potential downside of 2.91%. Given System1’s stronger consensus rating and higher probable upside, equities research analysts clearly believe System1 is more favorable than Clear Channel Outdoor.

Summary

Clear Channel Outdoor beats System1 on 9 of the 13 factors compared between the two stocks.

About System1

(Get Free Report)

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.

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.