Nexstar Media Group (NASDAQ:NXST – Get Free Report) and Alliance Entertainment (NASDAQ:AENT – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares Nexstar Media Group and Alliance Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexstar Media Group | 12.21% | 29.21% | 5.64% |
| Alliance Entertainment | 1.10% | 15.59% | 3.86% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Nexstar Media Group and Alliance Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexstar Media Group | 0 | 0 | 7 | 0 | 3.00 |
| Alliance Entertainment | 0 | 0 | 0 | 0 | 0.00 |
Earnings & Valuation
This table compares Nexstar Media Group and Alliance Entertainment”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexstar Media Group | $5.41 billion | 0.94 | $722.00 million | $19.74 | 8.40 |
| Alliance Entertainment | $1.10 billion | 0.14 | $4.58 million | $0.24 | 12.83 |
Nexstar Media Group has higher revenue and earnings than Alliance Entertainment. Nexstar Media Group is trading at a lower price-to-earnings ratio than Alliance Entertainment, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Nexstar Media Group has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Alliance Entertainment has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.
Institutional & Insider Ownership
95.3% of Nexstar Media Group shares are owned by institutional investors. Comparatively, 0.3% of Alliance Entertainment shares are owned by institutional investors. 6.7% of Nexstar Media Group shares are owned by insiders. Comparatively, 81.9% of Alliance Entertainment shares are owned 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.
Summary
Nexstar Media Group beats Alliance Entertainment on 12 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 Alliance Entertainment
Alliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company was founded in 1990 and is headquartered in Plantation, Florida.
Receive News & Ratings for Nexstar Media Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nexstar Media Group and related companies with MarketBeat.com's FREE daily email newsletter.
