Nexstar Broadcasting Group (NASDAQ: NXST) and E.W. Scripps Company (The) (NYSE:SSP) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitabiliy, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Nexstar Broadcasting Group and E.W. Scripps Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexstar Broadcasting Group 5.47% 24.33% 3.04%
E.W. Scripps Company (The) 6.05% 5.90% 3.24%

Earnings & Valuation

This table compares Nexstar Broadcasting Group and E.W. Scripps Company (The)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nexstar Broadcasting Group $1.39 billion 2.18 $488.14 million $2.33 27.55
E.W. Scripps Company (The) $944.55 million 1.59 $175.34 million $0.69 26.36

Nexstar Broadcasting Group has higher revenue and earnings than E.W. Scripps Company (The). E.W. Scripps Company (The) is trading at a lower price-to-earnings ratio than Nexstar Broadcasting Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

74.0% of E.W. Scripps Company (The) shares are owned by institutional investors. 8.4% of Nexstar Broadcasting Group shares are owned by company insiders. Comparatively, 4.2% of E.W. Scripps Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Nexstar Broadcasting Group has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500. Comparatively, E.W. Scripps Company (The) has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500.

Dividends

Nexstar Broadcasting Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.9%. E.W. Scripps Company (The) does not pay a dividend. Nexstar Broadcasting Group pays out 51.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Nexstar Broadcasting Group and E.W. Scripps Company (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexstar Broadcasting Group 0 0 7 0 3.00
E.W. Scripps Company (The) 0 2 2 0 2.50

Nexstar Broadcasting Group presently has a consensus target price of $78.86, suggesting a potential upside of 22.83%. E.W. Scripps Company (The) has a consensus target price of $23.00, suggesting a potential upside of 26.44%. Given E.W. Scripps Company (The)’s higher possible upside, analysts plainly believe E.W. Scripps Company (The) is more favorable than Nexstar Broadcasting Group.

Summary

Nexstar Broadcasting Group beats E.W. Scripps Company (The) on 11 of the 16 factors compared between the two stocks.

About Nexstar Broadcasting Group

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.

About E.W. Scripps Company (The)

The E. W. Scripps Company is a media enterprise with interests in television and radio broadcasting, as well as local and national digital media brands. The Company’s segments include television, radio, digital, and syndication and other. As of December 31, 2016, the Television segment included approximately 15 American Broadcasting Company (ABC) affiliates, five National Broadcasting Company (NBC) affiliates, two FOX affiliates, two Columbia Broadcasting System (CBS) affiliates and four non big-four affiliated stations. As of December 31, 2016, the radio segment owned 34 radio stations in eight markets. As of December 31, 2016, it operated 28 frequency modulation (FM) stations and six Amplitude Modulation (AM) stations. The digital segment includes the digital operations of its local television and radio businesses. Its Syndication and other segment primarily includes the syndication of news features and comics and other features for the newspaper industry.

Receive News & Ratings for Nexstar Broadcasting Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nexstar Broadcasting Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.