Nexstar Media Group (NASDAQ:NXST – Get Free Report) and SPAR Group (NASDAQ:SGRP – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
Institutional & Insider Ownership
95.3% of Nexstar Media Group shares are held by institutional investors. Comparatively, 9.6% of SPAR Group shares are held by institutional investors. 7.0% of Nexstar Media Group shares are held by insiders. Comparatively, 43.0% of SPAR Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Nexstar Media Group has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, SPAR Group has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexstar Media Group | $5.88 billion | 0.87 | $109.00 million | $5.21 | 31.78 |
| SPAR Group | $132.58 million | 0.15 | -$24.63 million | ($1.01) | -0.68 |
Nexstar Media Group has higher revenue and earnings than SPAR Group. SPAR Group 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.
Profitability
This table compares Nexstar Media Group and SPAR Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexstar Media Group | 3.20% | 24.02% | 3.61% |
| SPAR Group | -18.51% | -107.74% | -19.90% |
Analyst Recommendations
This is a summary of recent recommendations for Nexstar Media Group and SPAR Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexstar Media Group | 1 | 1 | 6 | 0 | 2.62 |
| SPAR Group | 1 | 0 | 0 | 0 | 1.00 |
Nexstar Media Group currently has a consensus price target of $256.50, indicating a potential upside of 54.92%. Given Nexstar Media Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Nexstar Media Group is more favorable than SPAR Group.
Summary
Nexstar Media Group beats SPAR Group on 13 of the 14 factors compared between the two stocks.
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.
About SPAR Group
SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.
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