Entravision Communications Corporation (NYSE: EVC) and Nexstar Broadcasting Group (NASDAQ:NXST) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitabiliy, risk and dividends.

Profitability

This table compares Entravision Communications Corporation and Nexstar Broadcasting Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entravision Communications Corporation 7.03% 10.15% 3.56%
Nexstar Broadcasting Group 5.47% 24.33% 3.04%

Risk and Volatility

Entravision Communications Corporation has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Nexstar Broadcasting Group has a beta of 2.31, meaning that its share price is 131% more volatile than the S&P 500.

Institutional & Insider Ownership

63.7% of Entravision Communications Corporation shares are owned by institutional investors. 20.7% of Entravision Communications Corporation shares are owned by company insiders. Comparatively, 8.4% of Nexstar Broadcasting Group shares are owned by company 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 & Earnings

This table compares Entravision Communications Corporation and Nexstar Broadcasting Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Entravision Communications Corporation $263.59 million 1.50 $61.52 million $0.21 28.57
Nexstar Broadcasting Group $1.39 billion 2.12 $488.14 million $2.33 26.76

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Entravision Communications Corporation and Nexstar Broadcasting Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entravision Communications Corporation 0 2 1 0 2.33
Nexstar Broadcasting Group 0 0 7 0 3.00

Entravision Communications Corporation presently has a consensus target price of $7.00, indicating a potential upside of 16.67%. Nexstar Broadcasting Group has a consensus target price of $78.86, indicating a potential upside of 26.47%. Given Nexstar Broadcasting Group’s stronger consensus rating and higher possible upside, analysts plainly believe Nexstar Broadcasting Group is more favorable than Entravision Communications Corporation.

Dividends

Entravision Communications Corporation pays an annual dividend of $0.13 per share and has a dividend yield of 2.2%. Nexstar Broadcasting Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.9%. Entravision Communications Corporation pays out 61.9% of its earnings in the form of a dividend. Nexstar Broadcasting Group pays out 51.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nexstar Broadcasting Group has increased its dividend for 3 consecutive years.

Summary

Nexstar Broadcasting Group beats Entravision Communications Corporation on 11 of the 17 factors compared between the two stocks.

Entravision Communications Corporation Company Profile

Entravision Communications Corporation is a media company. The Company reaches and engages Hispanics in the United States and certain border markets of Mexico across media channels and advertising platforms. The Company operates through three segments: television broadcasting, radio broadcasting and digital media. As of December 31, 2016, the Company owned and operated 54 television stations located primarily in California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Nevada, New Mexico, Texas and Washington, District of Columbia. It owns and operates Spanish-language radio stations in the United States. As of December 31, 2016, its radio stations consisted of 38 frequency modulation (FM) and 11 amplitude modulation (AM) stations located in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. The digital media segment provides digital advertising solutions that allow advertisers to reach online Hispanic audiences throughout the United States and Mexico.

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 Entravision Communications Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Entravision Communications Corporation and related companies with MarketBeat.com's FREE daily email newsletter.