BuzzFeed (NASDAQ:BZFD – Get Free Report) and Nexstar Media Group (NASDAQ:NXST – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Analyst Ratings
This is a summary of recent ratings and price targets for BuzzFeed and Nexstar Media Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BuzzFeed | 1 | 1 | 0 | 0 | 1.50 |
| Nexstar Media Group | 0 | 1 | 6 | 1 | 3.00 |
BuzzFeed presently has a consensus target price of $1.00, suggesting a potential downside of 28.57%. Nexstar Media Group has a consensus target price of $259.67, suggesting a potential upside of 42.66%. Given Nexstar Media Group’s stronger consensus rating and higher possible upside, analysts clearly believe Nexstar Media Group is more favorable than BuzzFeed.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BuzzFeed | $185.27 million | 0.28 | -$57.72 million | ($1.60) | -0.88 |
| Nexstar Media Group | $5.11 billion | 1.09 | $109.00 million | $4.66 | 39.06 |
Nexstar Media Group has higher revenue and earnings than BuzzFeed. BuzzFeed 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 BuzzFeed and Nexstar Media Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BuzzFeed | -33.26% | -97.22% | -30.89% |
| Nexstar Media Group | 3.23% | 22.97% | 3.88% |
Institutional and Insider Ownership
37.6% of BuzzFeed shares are owned by institutional investors. Comparatively, 95.3% of Nexstar Media Group shares are owned by institutional investors. 15.6% of BuzzFeed shares are owned by company insiders. Comparatively, 6.7% of Nexstar Media Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
BuzzFeed has a beta of 3.74, meaning that its stock price is 274% more volatile than the S&P 500. Comparatively, Nexstar Media Group has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Summary
Nexstar Media Group beats BuzzFeed on 13 of the 15 factors compared between the two stocks.
About BuzzFeed
BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.
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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