Comparing iHeartMedia (NASDAQ:IHRT) & Nexstar Media Group (NASDAQ:NXST)

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

Valuation and Earnings

This table compares Nexstar Media Group and iHeartMedia”s 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	1.10	$109.00 million	$5.21	33.94
iHeartMedia	$3.86 billion	0.11	-$472.87 million	($1.82)	-1.54

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

Insider & Institutional Ownership

95.3% of Nexstar Media Group shares are owned by institutional investors. Comparatively, 93.9% of iHeartMedia shares are owned by institutional investors. 7.0% of Nexstar Media Group shares are owned by company insiders. Comparatively, 10.2% of iHeartMedia shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments 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 stock price is 10% less volatile than the S&P 500. Comparatively, iHeartMedia has a beta of 2.19, indicating that its stock price is 119% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Nexstar Media Group and iHeartMedia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexstar Media Group	1	1	6	0	2.62
iHeartMedia	2	1	0	0	1.33

Nexstar Media Group presently has a consensus price target of $259.00, suggesting a potential upside of 46.47%. iHeartMedia has a consensus price target of $4.25, suggesting a potential upside of 51.25%. Given iHeartMedia’s higher probable upside, analysts plainly believe iHeartMedia is more favorable than Nexstar Media Group.

Profitability

This table compares Nexstar Media Group and iHeartMedia’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%
iHeartMedia	-7.18%	N/A	-1.12%

Summary

Nexstar Media Group beats iHeartMedia on 11 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 iHeartMedia

iHeartMedia, Inc. operates as an audio media company in the United States and internationally. It operates through three segments: Multiplatform Group, Digital Audio Group, and Audio & Media Services Group. The Multiplatform Group segment offers broadcast radio stations, sponsorship and events, and live and virtual events; and operates Premiere Networks, a national radio network that produces, distributes, or represents syndicated radio programs and services to radio station affiliates. It also delivers real-time traffic flow and incident information, and weather updates, sports, and news. The Digital Audio Group segment provides podcasting, digital sites, newsletters, digital services, and programs; and iHeartRadio, a mobile app and web based service for radio stations, digital only stations, custom artist stations, and podcasts. The Audio and Media Services Group segment engages in the media representation business; and provides scheduling and broadcast software and services. This segment also provides RCS, a cloud and on-premises broadcast software, such as radio and television automation, music scheduling, newsroom automation, advertising sales management, disaster recovery solutions; and real-time audio recognition technology to radio and television stations, cable channels, record labels, advertisers, and agencies, as well as media streaming and research services. The company was formerly known as CC Media Holdings, Inc. and changed its name to iHeartMedia, Inc. in September 2014. The company is headquartered in San Antonio, Texas.