Reviewing Nexstar Media Group (NXST) & LIN Media (NYSE:TVL)

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

Profitability

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

Net Margins Return on Equity Return on Assets
LIN Media N/A N/A N/A
Nexstar Media Group 5.60% 16.20% 2.49%

Earnings & Valuation

This table compares LIN Media and Nexstar Media Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LIN Media N/A N/A N/A $2.87 N/A
Nexstar Media Group $1.10 billion 3.07 $91.53 million $2.66 27.89

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

Dividends

Nexstar Media Group pays an annual dividend of $1.20 per share and has a dividend yield of 1.6%. LIN Media does not pay a dividend. Nexstar Media Group pays out 45.1% of its earnings in the form of a dividend.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LIN Media 0 0 0 0 N/A
Nexstar Media Group 0 0 10 0 3.00

Nexstar Media Group has a consensus price target of $87.44, indicating a potential upside of 17.85%.

Summary

Nexstar Media Group beats LIN Media on 6 of the 8 factors compared between the two stocks.

About LIN Media

LIN Media LLC (LIN Media) is a local multimedia company. The Company operates or services 43 television stations and seven digital channels in 23 of the United States markets, and a portfolio of Websites, applications and mobile products. Its television stations deliver local news, community service, and sports and entertainment programming to viewers, reaching 10.5% of homes owning televisions in the United States. In April 2013, it acquired a majority ownership position in HYFN. On July 30, 2013, LIN Media announced that it had completed its merger with LIN TV Corp., with LIN Media, as the surviving company in the merger. In February 2014, the Company acquired Federated Media Publishing, Inc.

About Nexstar Media 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.

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