Nexstar Broadcasting Group (NASDAQ: NXST) and Scripps Networks Interactive (NASDAQ:SNI) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Nexstar Broadcasting Group and Scripps Networks Interactive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nexstar Broadcasting Group 5.44% 18.35% 2.62%
Scripps Networks Interactive 18.20% 29.93% 11.45%

Dividends

Nexstar Broadcasting Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.9%. Scripps Networks Interactive pays an annual dividend of $1.20 per share and has a dividend yield of 1.4%. Nexstar Broadcasting Group pays out 48.8% of its earnings in the form of a dividend. Scripps Networks Interactive pays out 24.8% 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.

Earnings & Valuation

This table compares Nexstar Broadcasting Group and Scripps Networks Interactive’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nexstar Broadcasting Group $1.75 billion 1.66 $608.81 million $2.46 25.49
Scripps Networks Interactive $3.47 billion 3.20 $1.54 billion $4.84 17.67

Scripps Networks Interactive has higher revenue and earnings than Nexstar Broadcasting Group. Scripps Networks Interactive 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.

Risk and Volatility

Nexstar Broadcasting Group has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500. Comparatively, Scripps Networks Interactive has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Institutional & Insider Ownership

75.9% of Scripps Networks Interactive shares are owned by institutional investors. 8.4% of Nexstar Broadcasting Group shares are owned by company insiders. Comparatively, 2.5% of Scripps Networks Interactive shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Nexstar Broadcasting Group and Scripps Networks Interactive, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexstar Broadcasting Group 0 0 7 0 3.00
Scripps Networks Interactive 1 10 4 0 2.20

Nexstar Broadcasting Group currently has a consensus target price of $78.57, indicating a potential upside of 25.31%. Scripps Networks Interactive has a consensus target price of $83.25, indicating a potential downside of 2.63%. Given Nexstar Broadcasting Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Nexstar Broadcasting Group is more favorable than Scripps Networks Interactive.

Summary

Scripps Networks Interactive beats Nexstar Broadcasting Group on 9 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 Scripps Networks Interactive

Scripps Networks Interactive, Inc. is a developer of lifestyle-oriented content, providing primarily home, food, travel and other lifestyle-related programing. The Company’s content is distributed through multiple methods, including television, the Internet, digital platforms and licensing arrangements. The Company’s segments include U.S. Networks, International Networks, and Corporate and Other. As of December 31, 2016, the Company’s U.S. Networks segment consisted of six national television networks: HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel and Great American Country. The Company’s International Networks includes the TVN S.A. (TVN) portfolio of networks and other lifestyle-oriented networks available in the United Kingdom, other European markets, the Middle East and Africa (EMEA), Asia Pacific (APAC) and Latin America. In addition to the broadcast networks, it also licenses a portion of its programing to other broadcasters around the world.

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