Head-to-head review: Paramount Global (NASDAQ: PARAA) and Nexstar Media Group (NASDAQ: NXST)


World Paramount (NASDAQ: PARAAGet a rating) and Nexstar Media Group (NASDAQ: NXSTGet a rating) are both consumer discretionary companies, but which stock is superior? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Risk and Volatility

Paramount Global has a beta of 1.49, which means its stock price is 49% more volatile than the S&P 500. In comparison, Nexstar Media Group has a beta of 1.5, which means its stock price is 50 % more volatile than the S&P 500.

Dividends

Paramount Global pays an annual dividend of 0.96 per share and has a dividend yield of 3.6%. Nexstar Media Group pays an annual dividend of $3.60 per share and has a dividend yield of 1.9%. Paramount Global pays 15.7% of its earnings as a dividend. Nexstar Media Group distributes 17.5% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Nexstar Media Group has increased its dividend for 9 consecutive years. Paramount Global is clearly the best dividend-paying stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

1.0% of Paramount Global shares are held by institutional investors. In comparison, 96.0% of Nexstar Media Group shares are held by institutional investors. 1.7% of Paramount Global shares are held by insiders of the company. By comparison, 5.0% of Nexstar Media Group shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.

Analyst Notes

This is a breakdown of the current recommendations for Paramount Global and Nexstar Media Group, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
World Paramount 0 0 0 0 N / A
Nexstar Media Group 0 0 4 0 3.00

Nexstar Media Group has a consensus target price of $210.57, indicating a potential upside of 11.79%. Given Nexstar Media Group’s likely higher upside, analysts clearly believe that Nexstar Media Group is more favorable than Paramount Global.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Paramount Global and Nexstar Media Group.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
World Paramount $28.59 billion 0.61 $4.54 billion 6.11 4.43
Nexstar Media Group $4.65 billion 1.64 $834.57 million $20.59 9:15 a.m.

Paramount Global has higher revenue and profit than Nexstar Media Group. Paramount Global trades at a lower price-to-earnings ratio than Nexstar Media Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of Paramount Global and Nexstar Media Group.

Net margins Return on equity return on assets
World Paramount 14.26% 7.90% 3.05%
Nexstar Media Group 18.66% 32.08% 6.69%

Summary

Nexstar Media Group beats Paramount Global on 12 out of 16 factors compared between the two stocks.

About Paramount Global

(Get a rating)

Paramount Global operates as a worldwide media and entertainment company. The company distributes a schedule of news and public affairs programming, as well as sports and entertainment programming; acquires or develops and schedules programs on the CBS television network that include prime-time comedy and drama, reality television, specials, children’s programs, daytime dramas, game shows, and television programming. end of the night ; produces or distributes talk shows, court shows, game shows, and news magazines; owns and operates 29 broadcast television stations; and operates CBS Sports Network, a 24-hour cable channel that offers sports and related content, as well as streaming and cable subscription services. It also operates Paramount+, a digital subscription video-on-demand and live streaming service; and creates and acquires programming for distribution and viewing on various media platforms, including subscription cable networks, subscription streaming, and premium and basic cable networks. In addition, the company develops, produces, finances, acquires and distributes films. Paramount Global was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was incorporated in 1986 and is headquartered in New York, New York. Paramount Global is a subsidiary of National Amusements, Inc.

About Nexstar Media Group

(Get a rating)

Nexstar Media Group, Inc., a television broadcasting and digital media company, is focused on the acquisition, development and operation of television stations and interactive community websites and digital media services in the United States. The company offers free programming to viewers. As of December 31, 2020, it provides sales, programming, and other services through various local service agreements to 37 power television stations owned by independent third parties; and owned, operated, programmed, or provided sales and other services to 198 television stations. The company also offers video and display advertising platforms that are delivered locally or nationally through its own and various third-party websites and mobile applications, as well as WGN America, a national general entertainment cable network. Its stations are affiliated with ABC, NBC, FOX, CBS, The CW, MyNetworkTV and other 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, in Texas.



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Daniel C. Williams