Analyzing Nexstar Media Group (NASDAQ:NXST) and Cineverse (NASDAQ:CNVS)

Cineverse (NASDAQ:CNVS) and Nexstar Media Group (NASDAQ:NXST) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cineverse and Nexstar Media Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cineverse	1	0	1	0	2.00
Nexstar Media Group	0	1	7	0	2.88

Cineverse presently has a consensus target price of $9.00, indicating a potential upside of 247.49%. Nexstar Media Group has a consensus target price of $225.00, indicating a potential upside of 18.02%. Given Cineverse’s higher possible upside, equities research analysts plainly believe Cineverse is more favorable than Nexstar Media Group.

Institutional and Insider Ownership

8.2% of Cineverse shares are owned by institutional investors. Comparatively, 95.3% of Nexstar Media Group shares are owned by institutional investors. 13.3% of Cineverse shares are owned by company insiders. Comparatively, 6.7% of Nexstar Media Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Cineverse and Nexstar Media Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cineverse	$80.17 million	0.62	$3.60 million	$0.08	32.38
Nexstar Media Group	$5.32 billion	1.09	$722.00 million	$19.26	9.90

Nexstar Media Group has higher revenue and earnings than Cineverse. Nexstar Media Group is trading at a lower price-to-earnings ratio than Cineverse, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Cineverse has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Nexstar Media Group has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Cineverse and Nexstar Media Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cineverse	3.89%	9.98%	4.53%
Nexstar Media Group	11.90%	28.40%	5.52%

Summary

Nexstar Media Group beats Cineverse on 10 of the 14 factors compared between the two stocks.

About Cineverse

Cineverse Corp. operates as a streaming technology and entertainment company. The company operates in two segments, Cinema Equipment, and Content and Entertainment. It owns and operates streaming channels, through its proprietary technology platform. The company also delivers curated content through subscription video on demand (SVOD), dedicated ad-supported (AVOD), and ad-supported streaming linear (FAST) channels, as well as social video streaming services and audio podcasts; operates OTT streaming entertainment channels; and offers monitoring, billing, collection, and verification services. It entertains consumers worldwide by providing premium feature film and television programs, enthusiast streaming channels, and technology services. The company was formerly known as Cinedigm Corp. and changed its name to Cineverse Corp. in May 2023. Cineverse Corp. was incorporated in 2000 and is based in New York, New York.

About Nexstar Media Group

Nexstar Media Group, Inc. operates as a diversified media company that produces and distributes engaging local and national news, sports and entertainment content across the television and digital platforms in the United States. It owns, operates, programs, or provides sales and other services to various markets; and offers television programming services. The company offers video and display advertising platforms that are delivered locally or nationally through its own and various third party websites, mobile and over-the-top applications, other digital media solutions to media publishers, and advertisers and a consumer product reviews platform. In addition, it owns NewsNation, a national cable news network; and WGN-AM, a Chicago radio station, as well as owns and operates digital multicast networks and other multicast network services. Further, its digital assets include local websites, mobile applications, connected television applications, free-ad supported television channels representing products of local television stations, The CW, The Hill and BestReviews, and a suite of advertising solutions. Additionally, the company engages in digital business; and management of real estate assets, including leasing of owned office and production facilities. Its stations are affiliates of ABC, NBC, FOX, CBS, The CW, MyNetworkTV, and other broadcast television networks. The company was formerly known as Nexstar Broadcasting Group, Inc. and changed its name to Nexstar Media Group, Inc. in January 2017. Nexstar Media Group, Inc. was founded in 1996 and is headquartered in Irving, Texas.