Backing out the impairment charges, whether you look at the 3-month or 9-month 2008 operating results, Entercom's operating income as a percentage of revenue is STILL greater than Emmis's, and Entercom's revenue has PASSed Emmis's revenue.
At closing prices of $1.51 for ETM and $0.42 for EMMS, I figure their market caps to be about: ETM: $57.2 million EMMS: $15.4 million
EMMS does look cheaper considering the most recent quarterly revenue ETM: $115.6 million (twice market cap) EMMS: $85 million (over 5 times market cap) and operating income (with impairment charges backed out) ETM: $32.8 million EMMS: $12.9 million
ETM's operating income (with impairment charges backed out) is a greater multiple of its interest expense than is Emmis's, so the 3-month incomes before taxes (with impairment charges backed out) are: ETM: $23.8 million EMMS: $6.9 million
The companies' market caps make Emmis look cheaper in comparison to revenue and, to a lesser extent, income. I believe, however, that Entercom is sufficiently superiorly managed that it is a better deal than Emmis at their current market caps. I do own a little Emmis just in case, though!