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

Dividends

Nexstar Broadcasting Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Nexstar Broadcasting Group pays out 44.9% of its earnings in the form of a dividend. As a group, “Television Broadcasting” companies pay a dividend yield of 1.5% and pay out 23.5% of their earnings in the form of a dividend.

Profitability

This table compares Nexstar Broadcasting Group and its rivals’ 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 10.94% 94.09% 5.95%

Volatility & Risk

Nexstar Broadcasting Group has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500. Comparatively, Nexstar Broadcasting Group’s rivals have a beta of 1.56, indicating that their average share price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nexstar Broadcasting Group and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexstar Broadcasting Group 0 0 9 0 3.00
Nexstar Broadcasting Group Competitors 85 548 499 4 2.37

Nexstar Broadcasting Group presently has a consensus price target of $83.67, suggesting a potential upside of 25.91%. As a group, “Television Broadcasting” companies have a potential upside of 20.84%. Given Nexstar Broadcasting Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Nexstar Broadcasting Group is more favorable than its rivals.

Earnings and Valuation

This table compares Nexstar Broadcasting Group and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Nexstar Broadcasting Group $1.10 billion $91.53 million 24.89
Nexstar Broadcasting Group Competitors $3.48 billion $571.33 million 40.78

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

Insider and Institutional Ownership

68.9% of shares of all “Television Broadcasting” companies are owned by institutional investors. 8.4% of Nexstar Broadcasting Group shares are owned by company insiders. Comparatively, 8.2% of shares of all “Television Broadcasting” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Nexstar Broadcasting Group rivals 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.

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