JULY 22, 2019 THE LIST LOS ANGELES BUSINESS JOURNAL 21

THE LIST LABJ Stock Index companies ranked by three-year average return on equityMOST PROFITABLE PUBLIC COMPANIES

1 Avery Dennison Corp. 36.40

2 Stamps.com Inc. 29.85

3 Entravision Communications Corp. 27.10

4 Amgen Inc. 26.10

5 Simulations Plus Inc. 26.08

6 Public Storage 25.53

7 Oaktree Capital Group 25.20

8 U.S. Auto Parts Network Inc. 24.98

9 Marcus & Millichap Inc. 23.64

10 Walt Disney Co. 23.53

11 Cheesecake Factory Inc. 22.00

12 Landmark Infrastructure Partners 21.85

13 Ares Management Corp. 21.75

14 CBRE Group Inc. 21.01

15 Houlihan Lokey Inc. 18.60

16 RadNet Inc. 17.37

17 East West Bancorp Inc. 14.71

18 Preferred Bank 14.66

19 PS Business Parks Inc. 14.44

20 Air Lease Corp. 14.43

21 LTC Properties Inc. 14.43

22 ASGN Inc. 14.41

23 j2 Global Inc. 14.40

24 Skechers U.S.A. Inc. 14.21

25 Teledyne Technologies Inc. 14.04

26 Virco Manufacturing Corp. 13.63

27 American States Water Co. 12.51

28 Tetra Tech Inc. 12.42

29 Reliance Steel & Aluminum Co. 11.68

30 Reading International Inc. 11.46

31 Royal Business Bank 11.26

32 PCM Inc. 11.02

33 Flamemaster Corp. 10.84

34 Cathay General Bancorp 10.78

35 Green Dot Corp. 10.70

36 Activision Blizzard Inc. 10.52

37 Hanmi Financial Corp. 10.47

38 Gores Holdings Inc. 10.33

39 B. Riley Financial Inc. 9.37

40 Motorcar Parts of America Inc. 9.28

41 American Business Bank 8.53

42 Hope Bancorp Inc. 8.47

43 PacWest Bancorp 8.24

44 KB Home 8.14

45 Farmers and Merchants Bank of Long Beach 7.88

46 TCP Capital Corp. 7.87

47 PennyMac Mortgage Investment Trust 7.76

48 Korn Ferry 7.62

49 A-Mark Precious Metals Inc. 7.06

50 Tutor Perini Corp. 6.76

3-Year Avg.Rank Company Name ROE (%)

3-Year Avg.Rank Company Name ROE (%)

3-Year Avg.Rank Company Name ROE (%)

3-Year Avg.Rank Company Name ROE (%)

51 Kennedy-Wilson Holdings Inc. 6.66

52 Kilroy Realty Corp. 6.65

53 Macerich Co. 5.76

54 Trio-Tech International 5.46

55 Molina Healthcare Inc. 5.45

56 AECOM 5.14

57 Douglas Emmett Inc. 4.52

58 Broadway Financial Corp. 4.42

59 Edison International 4.06

60 Mercury General Corp. 4.00

61 Nova Lifestyle Inc. 3.77

62 Aerovironment Inc. 3.65

63 Rexford Industrial Realty Inc. 2.97

64 Lions Gate Entertainment Corp. 2.74

65 Anworth Mortgage Asset Corp. 2.57

66 Big 5 Sporting Goods Corp. 2.32

67 Hudson Pacific Properties Inc. 1.96

68 Alexandria Real Estate Equities Inc. 1.55

69 NetSol Technologies Inc. 1.50

70 Daily Journal Corp. 1.21

71 OSI Systems Inc. 0.98

72 Guess Inc. 0.95

73 American Homes 4 Rent -0.35

74 Emcore Corp. -0.44

75 Taitron Components Inc. -2.00

76 Colony Capital Inc. -3.98

77 Live Nation Entertainment Inc. -4.66

78 Wesco Aircraft Holdings Inc. -5.12

79 Unico American Corp. -7.01

80 Xencor Inc. -8.01

81 General Finance Corp. -9.34

82 Staar Surgical Co. -10.41

83 Blackline Inc. -12.23

84 TrueCar Inc. -13.02

85 Boingo Wireless Inc. -15.67

86 Leaf Group Ltd. -28.20

87 Mattel Inc. -33.32

88 Research Solutions Inc. -34.05

89 Tix Corp. -35.30

90 Rubicon Project Inc. -38.90

91 Point.360 -41.84

92 NantKwest Inc. -42.53

93 Jakks Pacific Inc. -43.60

94 Social Reality Inc. -52.13

95 Arrowhead Pharmaceuticals Inc. -59.91

96 Cherokee Inc. -64.68

97 Capstone Turbine Corp. -75.32

98 Snap Inc. -85.74

99 NantHealth Inc. -100.72

100 CytRx Corp. -132.07Source: Bloomberg News

By RACHEL URANGA Staff Reporter

Entravision Communications Corp. is the largest affiliate of Univision Com-munications Inc. in the country and by

many estimates a traditional media company focusing on the Latino market. But it’s mak-ing a hard push into the evolving digital arena.

Over the last year, the Santa Monica-based company, which operates 49 radio stations and 55 television networks, has been cultivating social media “influencers” and building out its digital platforms. Entravision also acquired Smadex, a digital advertising company based in Spain.

Jeffery Liberman, Entravision’s president, said brands are increasingly looking to track advertising investments across a wide range of platforms from social media to television.

“We believe we are well positioned with traditional and digital assets to meet the marketing needs of advertisers and grow total advertising revenues,” Liberman said in a statement.

Entravision ranked No. 3 on this year’s Business Journal list of Most Profitable Public Companies. And while its digital revenue was down during the first quarter of 2019, Entravision executives said the company is retooling its strategy to reach

more lucrative advertisers.“We are feeling very positive about the

potential for digital growth,” the company’s Chief Executive Walter Ulloa told investors in May.

The company reported $298 million in revenue in 2018, down from $536 million in

2017 when earnings got a boost from the $263 million sale of a portion of its broadband spectrum — a sliver of airwaves in high demand as telecom companies expand their 5G networks.

Analyst Michael Kupinski at Noble Capital Markets Inc.

said Entravision’s spectrum assets are gaining value with the rising demand for broadband.

The company is also developing more services for advertisers. Using its new Smadex

technology, Entravision can provide digital advertisers with more detailed information on how consumers are interacting with their ads. Entravision is currently integrating that technology in U.S. media markets.

The company says it’s looking forward to the presidential election season and the advertising dollars that are likely to follow.

“We’re expecting political ads to start up in the fourth quarter of 2019 and with the number of voters casting their ballot by mail on the rise – 38% of Latinos who voted in the last election sent their votes in by mail – we expect to see political buys placed earlier in the 2020 election cycle,” Liberman said.

The stations could use the boost. This spring Entravision’s Univision and

UniMas affiliated television stations returned to DishLatino after a nine-month absence. They were booted for a lack of subscribers as Univision ratings sagged.

Kupinski said the political season should be a bright spot. He said the company expects

to bring in $15 million to $20 million in revenue this cycle, up from an average of about $10 million to $12 million.

About 40% of Entravision’s ad revenues come from California, he added, and that should increase with the state’s new earlier primary and rising profile on the national stage.

“Investors are starting to warm back up,” Kupinsiki said.

Broadband Assets, Political Ads Drive EntravisionMedia company focuses on Latino audience, boosts advertiser tech

JULY 22, 2019 LOS ANGELES BUSINESS JOURNAL 21 P U B L I C C O M P A N I E S

Entravision Communications Corp.(NYSE: EVC)

HEADQUARTERS: Santa Monica

BUSINESS: Television, radio, Spanish-

language media

CEO: Walter Ulloa

MARKET CAP: $5.7 billion

QI EARNINGS: $1.42 million

Source: Yahoo Finance

Jan. ’19 Jul. ’19

4.5

3.5

2.5

$5.5

Jul. ’18

We expect to see political buys placed earlier in the 2020 election cycle.

JEFFERY LIBERMANEntravision Communications Corp.

Ulloa

021_SR_ProfCos.indd 21 7/18/19 4:50 PM