Nexstar Media Group (NASDAQ:NXST – Get Free Report) and Educational Development (NASDAQ:EDUC – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Risk & Volatility
Nexstar Media Group has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Educational Development has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
Earnings & Valuation
This table compares Nexstar Media Group and Educational Development”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexstar Media Group | $5.88 billion | 0.93 | $109.00 million | $5.21 | 33.94 |
| Educational Development | $22.91 million | 0.50 | $2.33 million | $0.23 | 5.87 |
Nexstar Media Group has higher revenue and earnings than Educational Development. Educational Development 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.
Institutional & Insider Ownership
95.3% of Nexstar Media Group shares are held by institutional investors. Comparatively, 19.6% of Educational Development shares are held by institutional investors. 7.0% of Nexstar Media Group shares are held by company insiders. Comparatively, 11.9% of Educational Development shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Nexstar Media Group and Educational Development’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% |
| Educational Development | 9.75% | -18.23% | -12.73% |
Analyst Recommendations
This is a summary of recent ratings for Nexstar Media Group and Educational Development, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexstar Media Group | 1 | 1 | 6 | 0 | 2.62 |
| Educational Development | 1 | 0 | 0 | 0 | 1.00 |
Nexstar Media Group currently has a consensus target price of $259.00, indicating a potential upside of 46.47%. Given Nexstar Media Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Nexstar Media Group is more favorable than Educational Development.
Summary
Nexstar Media Group beats Educational Development 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 Educational Development
Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.
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