Nexstar Media Group (NASDAQ:NXST – Get Free Report) and Radio One (NASDAQ:UONEK – Get Free Report) are both communication services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Nexstar Media Group and Radio One’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% |
| Radio One | -19.04% | -7.13% | -0.43% |
Analyst Recommendations
This is a breakdown of recent recommendations for Nexstar Media Group and Radio One, 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 |
| Radio One | 1 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
95.3% of Nexstar Media Group shares are held by institutional investors. Comparatively, 19.7% of Radio One shares are held by institutional investors. 7.0% of Nexstar Media Group shares are held by insiders. Comparatively, 50.5% of Radio One shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Nexstar Media Group and Radio One”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 | $4.95 billion | 1.00 | $109.00 million | $5.21 | 30.82 |
| Radio One | $374.37 million | 0.05 | -$146.87 million | ($15.11) | -0.26 |
Nexstar Media Group has higher revenue and earnings than Radio One. Radio One 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.
Volatility & Risk
Nexstar Media Group has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Radio One has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.
Summary
Nexstar Media Group beats Radio One on 13 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 Radio One
Urban One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital. The Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. As of April 30, 2023, it owned and/or operated 66 broadcast stations, including 55 FM or AM stations, 9 HD stations, and the 2 low power television stations under the Radio One tradename located in 13 urban markets. The Cable Television segment operates TV One, an African-American targeted cable television network; and CLEO TV, a lifestyle and entertainment network. The Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show. This segment also operates BlackAmericaWeb.com, an African-American targeted news and entertainment website, as well as other event related activities. The Digital segment owns Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Cassius and Bossip, HipHopWired, and MadameNoire digital platforms and brands. The company was formerly known as Radio One, Inc. and changed its name to Urban One, Inc. in May 2017. Urban One, Inc. was founded in 1980 and is based in Silver Spring, Maryland.
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