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

Insider and Institutional Ownership

69.0% of shares of all “Television Broadcasting” companies are held by institutional investors. 7.8% of Nexstar Broadcasting Group shares are held by company insiders. Comparatively, 8.2% of shares of all “Television Broadcasting” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

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 11.20% 95.07% 6.14%

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Nexstar Broadcasting Group $1.10 billion $91.53 million 24.53
Nexstar Broadcasting Group Competitors $3.48 billion $571.33 million 40.29

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.

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 45.1% 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 23.6% of their earnings in the form of a dividend.

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 peers have a beta of 1.56, indicating that their average share price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Nexstar Broadcasting Group and its peers, 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 currently has a consensus price target of $83.67, suggesting a potential upside of 28.22%. As a group, “Television Broadcasting” companies have a potential upside of 23.19%. Given Nexstar Broadcasting Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Nexstar Broadcasting Group is more favorable than its peers.

Summary

Nexstar Broadcasting Group peers beat Nexstar Broadcasting Group on 10 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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