Nexstar Media Group (NASDAQ:NXST – Get Free Report) and BuzzFeed (NASDAQ:BZFD – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Insider & Institutional Ownership
95.3% of Nexstar Media Group shares are held by institutional investors. Comparatively, 37.6% of BuzzFeed shares are held by institutional investors. 6.7% of Nexstar Media Group shares are held by insiders. Comparatively, 15.6% of BuzzFeed shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Nexstar Media Group has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 3.75, suggesting that its share price is 275% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Nexstar Media Group | 3.23% | 22.97% | 3.88% |
| BuzzFeed | -33.26% | -97.22% | -30.89% |
Valuation and Earnings
This table compares Nexstar Media Group and BuzzFeed”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexstar Media Group | $4.95 billion | 1.12 | $109.00 million | $4.66 | 39.06 |
| BuzzFeed | $185.27 million | 0.28 | -$57.72 million | ($1.60) | -0.88 |
Nexstar Media Group has higher revenue and earnings than BuzzFeed. BuzzFeed 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.
Analyst Recommendations
This is a summary of recent ratings and price targets for Nexstar Media Group and BuzzFeed, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexstar Media Group | 0 | 1 | 6 | 1 | 3.00 |
| BuzzFeed | 1 | 1 | 0 | 0 | 1.50 |
Nexstar Media Group presently has a consensus price target of $259.67, indicating a potential upside of 42.66%. BuzzFeed has a consensus price target of $1.00, indicating a potential downside of 28.57%. Given Nexstar Media Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Nexstar Media Group is more favorable than BuzzFeed.
Summary
Nexstar Media Group beats BuzzFeed on 13 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 BuzzFeed
BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.
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