Head-To-Head Survey: Nexstar Broadcasting Group (NASDAQ:NXST) vs. The Competition

Nexstar Broadcasting Group (NASDAQ: NXST) is one of 15 publicly-traded companies in the “Television Broadcasting” industry, but how does it contrast to its peers? We will compare Nexstar Broadcasting Group to related businesses based on the strength of its dividends, institutional ownership, valuation, profitability, risk, earnings and analyst recommendations.

Risk & Volatility

Nexstar Broadcasting Group has a beta of 2.21, meaning that its share price is 121% more volatile than the S&P 500. Comparatively, Nexstar Broadcasting Group’s peers have a beta of 1.57, meaning that their average share price is 57% more volatile than the S&P 500.

Insider & Institutional Ownership

68.9% of shares of all “Television Broadcasting” companies are held by institutional investors. 8.4% of Nexstar Broadcasting Group shares are held by insiders. Comparatively, 8.2% of shares of all “Television Broadcasting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Nexstar Broadcasting Group and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Nexstar Broadcasting Group $1.10 billion $91.53 million 26.60
Nexstar Broadcasting Group Competitors $3.48 billion $571.33 million 38.51

Nexstar Broadcasting Group’s peers have higher revenue and earnings than Nexstar Broadcasting Group. Nexstar Broadcasting Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for Nexstar Broadcasting Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexstar Broadcasting Group 0 0 9 0 3.00
Nexstar Broadcasting Group Competitors 85 546 498 5 2.37

Nexstar Broadcasting Group presently has a consensus price target of $83.67, indicating a potential upside of 18.26%. As a group, “Television Broadcasting” companies have a potential upside of 10.34%. Given Nexstar Broadcasting Group’s stronger consensus rating and higher possible upside, analysts clearly believe Nexstar Broadcasting Group is more favorable than its peers.

Profitability

This table compares Nexstar Broadcasting Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexstar Broadcasting Group 5.60% 16.20% 2.49%
Nexstar Broadcasting Group Competitors 11.15% 94.98% 6.10%

Dividends

Nexstar Broadcasting Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.7%. Nexstar Broadcasting Group pays out 45.1% of its earnings in the form of a dividend. As a group, “Television Broadcasting” companies pay a dividend yield of 1.3% and pay out 21.7% of their earnings in the form of a dividend.

Summary

Nexstar Broadcasting Group peers beat Nexstar Broadcasting Group on 9 of the 15 factors compared.

Nexstar Broadcasting Group Company Profile

Nexstar Media Group, Inc., formerly Nexstar Broadcasting Group, Inc., is a television broadcasting and digital media company. The Company is focused on the acquisition, development and operation of television stations and interactive community Websites, and digital media services in medium-sized markets in the United States. The Company’s segments include Broadcasting and Other. The Company’s broadcast segment includes television stations and related community-focused Websites that it owns, operates, programs or provides sales and other services to in various markets across the United States. The other activities of the Company include corporate functions, eliminations and other operations. As of December 31, 2016, it owned, operated, programmed or provided sales and other services to 104 full power television stations in 62 markets in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, New York, Utah, Vermont, Virginia, West Virginia and Wisconsin, among others.

Receive News & Ratings for Nexstar Broadcasting Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nexstar Broadcasting Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply