Radio One (NASDAQ:UONEK – Get Free Report) and Nexstar Media Group (NASDAQ:NXST – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Analyst Recommendations
This is a breakdown of current recommendations for Radio One and Nexstar Media Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Radio One | 1 | 0 | 0 | 0 | 1.00 |
| Nexstar Media Group | 1 | 1 | 6 | 0 | 2.62 |
Nexstar Media Group has a consensus price target of $256.50, suggesting a potential upside of 59.75%. Given Nexstar Media Group’s stronger consensus rating and higher probable upside, analysts plainly believe Nexstar Media Group is more favorable than Radio One.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Radio One | $374.37 million | 0.05 | -$146.87 million | ($15.11) | -0.26 |
| Nexstar Media Group | $4.95 billion | 1.00 | $109.00 million | $5.21 | 30.82 |
Nexstar Media Group has higher revenue and earnings than Radio One. Radio One is trading at a lower price-to-earnings ratio than Nexstar Media Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
19.7% of Radio One shares are owned by institutional investors. Comparatively, 95.3% of Nexstar Media Group shares are owned by institutional investors. 50.5% of Radio One shares are owned by company insiders. Comparatively, 7.0% of Nexstar Media Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Radio One has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Nexstar Media Group has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Profitability
This table compares Radio One and Nexstar Media Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Radio One | -19.04% | -7.13% | -0.43% |
| Nexstar Media Group | 3.20% | 24.02% | 3.61% |
Summary
Nexstar Media Group beats Radio One on 13 of the 14 factors compared between the two stocks.
About Radio One
Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.
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.
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