Head-To-Head Contrast: Nexstar Media Group (NASDAQ:NXST) & Versant (NASDAQ:VSNT)

Nexstar Media Group (NASDAQ:NXST) and Versant (NASDAQ:VSNT) are both mid-cap communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Profitability

This table compares Nexstar Media Group and Versant’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%
Versant	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for Nexstar Media Group and Versant, 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
Versant	1	7	2	0	2.10

Nexstar Media Group presently has a consensus price target of $256.50, suggesting a potential upside of 55.84%. Versant has a consensus price target of $42.29, suggesting a potential upside of 33.10%. Given Nexstar Media Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Nexstar Media Group is more favorable than Versant.

Dividends

Nexstar Media Group pays an annual dividend of $7.44 per share and has a dividend yield of 4.5%. Versant pays an annual dividend of $1.50 per share and has a dividend yield of 4.7%. Nexstar Media Group pays out 142.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Versant pays out 43.1% of its earnings in the form of a dividend. Nexstar Media Group has increased its dividend for 12 consecutive years. Versant is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

95.3% of Nexstar Media Group shares are owned by institutional investors. 7.0% of Nexstar Media Group shares are owned by insiders. Comparatively, 0.1% of Versant shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Nexstar Media Group and Versant”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexstar Media Group	$4.95 billion	1.02	$109.00 million	$5.21	31.59
Versant	$6.69 billion	0.66	$930.00 million	$3.48	9.13

Versant has higher revenue and earnings than Nexstar Media Group. Versant 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.

Summary

Nexstar Media Group beats Versant on 11 of the 15 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 Versant

Versant Corporation is a provider of data management software. The Company designs, develops, markets and supports database management system products that companies use to solve data management and data integration issues. It also provides related product support, training and consulting services to assist users of the Company’s products in developing and deploying software applications based on its products. The Company’s Versant Object Database product is used primarily by enterprises, which have data management requirements, such as technology providers, telecommunications carriers, Government defense agencies, defense contractors, healthcare companies and companies in the financial services and transportation industries. In addition to its product offerings, to assist users in their development and deployment of applications based on the Versant Object Database, FastObjects and db4o, it offers related professional services.