Beasley Broadcast Group (NASDAQ:BBGI – Get Free Report) and Nexstar Media Group (NASDAQ:NXST – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
Dividends
Beasley Broadcast Group pays an annual dividend of $0.20 per share and has a dividend yield of 3.4%. Nexstar Media Group pays an annual dividend of $7.44 per share and has a dividend yield of 3.7%. Beasley Broadcast Group pays out -0.3% of its earnings in the form of a dividend. Nexstar Media Group pays out 67.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nexstar Media Group has increased its dividend for 12 consecutive years. Nexstar Media Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Beasley Broadcast Group and Nexstar Media Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Beasley Broadcast Group | $190.74 million | 0.06 | -$196.55 million | ($59.65) | -0.10 |
| Nexstar Media Group | $4.95 billion | 1.24 | $109.00 million | $10.99 | 18.08 |
Nexstar Media Group has higher revenue and earnings than Beasley Broadcast Group. Beasley Broadcast Group 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.
Profitability
This table compares Beasley Broadcast Group and Nexstar Media Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Beasley Broadcast Group | -55.68% | -96.53% | -5.84% |
| Nexstar Media Group | 5.48% | 32.25% | 4.44% |
Insider and Institutional Ownership
21.7% of Beasley Broadcast Group shares are held by institutional investors. Comparatively, 95.3% of Nexstar Media Group shares are held by institutional investors. 51.8% of Beasley Broadcast Group shares are held by insiders. Comparatively, 7.0% of Nexstar Media Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Beasley Broadcast Group has a beta of 4.88, indicating that its stock price is 388% more volatile than the S&P 500. Comparatively, Nexstar Media Group has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Beasley Broadcast Group and Nexstar Media Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Beasley Broadcast Group | 1 | 1 | 1 | 0 | 2.00 |
| Nexstar Media Group | 1 | 1 | 6 | 0 | 2.62 |
Nexstar Media Group has a consensus price target of $256.67, indicating a potential upside of 29.14%. Given Nexstar Media Group’s stronger consensus rating and higher possible upside, analysts clearly believe Nexstar Media Group is more favorable than Beasley Broadcast Group.
Summary
Nexstar Media Group beats Beasley Broadcast Group on 14 of the 17 factors compared between the two stocks.
About Beasley Broadcast Group
Beasley Broadcast Group, Inc., a multi-platform media company, owns and operates radio stations in the United States. The company offers local and national advertisers integrated marketing solutions across audio, digital, and event platforms. It operates Houston Outlaws, an esports team that competes in the Overwatch League; and an esports team that competes in the Rocket League. Beasley Broadcast Group, Inc. was founded in 1961 and is based in Naples, Florida.
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.
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