Head-To-Head Contrast: Nexstar Media Group (NASDAQ:NXST) vs. Entravision Communications (NYSE:EVC)

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

Insider & Institutional Ownership

69.5% of Entravision Communications shares are owned by institutional investors. Comparatively, 95.3% of Nexstar Media Group shares are owned by institutional investors. 9.1% of Entravision Communications shares are owned by company insiders. Comparatively, 7.0% of Nexstar Media Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Entravision Communications has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Nexstar Media Group has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Entravision Communications and Nexstar Media Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Entravision Communications	0	1	0	0	2.00
Nexstar Media Group	1	1	6	0	2.62

Nexstar Media Group has a consensus price target of $256.50, indicating a potential upside of 49.62%. Given Nexstar Media Group’s stronger consensus rating and higher probable upside, analysts clearly believe Nexstar Media Group is more favorable than Entravision Communications.

Dividends

Entravision Communications pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. Nexstar Media Group pays an annual dividend of $7.44 per share and has a dividend yield of 4.3%. Entravision Communications pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Nexstar Media Group has increased its dividend for 12 consecutive years. Nexstar Media Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Entravision Communications	0.62%	6.98%	1.17%
Nexstar Media Group	3.20%	24.02%	3.61%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Entravision Communications	$447.59 million	1.26	-$79.17 million	$0.01	609.00
Nexstar Media Group	$4.95 billion	1.07	$109.00 million	$5.21	32.91

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

Summary

Nexstar Media Group beats Entravision Communications on 13 of the 17 factors compared between the two stocks.

About Entravision Communications

Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.

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.