WallStSmart

Nexstar Broadcasting Group Inc (NXST)vsReddit, Inc. (RDDT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Nexstar Broadcasting Group Inc generates 111% more annual revenue ($5.88B vs $2.78B). RDDT leads profitability with a 31.4% profit margin vs 3.2%. NXST appears more attractively valued with a PEG of 0.28. RDDT earns a higher WallStSmart Score of 77/100 (B+).

NXST

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 5.5Value: 5.3Quality: 4.5
Piotroski: 4/9Altman Z: 1.28

RDDT

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.3Quality: 9.0
Piotroski: 4/9Altman Z: 7.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NXSTSignificantly Overvalued (-20.1%)

Margin of Safety

-20.1%

Fair Value

$200.19

Current Price

$164.50

$35.69 premium

UndervaluedFair: $200.19Overvalued
RDDTFair Value (-4.7%)

Margin of Safety

-4.7%

Fair Value

$137.78

Current Price

$134.66

$3.12 premium

UndervaluedFair: $137.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NXST4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2810/10

Growing faster than its price suggests

Revenue GrowthGrowth
62.2%10/10

Revenue surging 62.2% year-over-year

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

RDDT6 strengths · Avg: 9.8/10
Profit MarginProfitability
31.4%10/10

Keeps 31 of every $100 in revenue as profit

Revenue GrowthGrowth
61.1%10/10

Revenue surging 61.1% year-over-year

EPS GrowthGrowth
177.8%10/10

Earnings expanding 177.8% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
7.6610/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
26.5%9/10

Every $100 of equity generates 27 in profit

Areas to Watch

NXST4 concerns · Avg: 3.0/10
P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Altman Z-ScoreHealth
1.282/10

Distress zone — elevated risk

RDDT1 concerns · Avg: 4.0/10
P/E RatioValuation
36.3x4/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : NXST

The strongest argument for NXST centers on PEG Ratio, Revenue Growth, Price/Book. Revenue growth of 62.2% demonstrates continued momentum. PEG of 0.28 suggests the stock is reasonably priced for its growth.

Bull Case : RDDT

The strongest argument for RDDT centers on Profit Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 31.4% and operating margin at 28.8%. Revenue growth of 61.1% demonstrates continued momentum.

Bear Case : NXST

The primary concerns for NXST are P/E Ratio, Return on Equity, Profit Margin. Debt-to-equity of 5.34 is elevated, increasing financial risk. Thin 3.2% margins leave little buffer for downturns.

Bear Case : RDDT

The primary concerns for RDDT are P/E Ratio.

Key Dynamics to Monitor

NXST profiles as a hypergrowth stock while RDDT is a growth play — different risk/reward profiles.

RDDT carries more volatility with a beta of 2.05 — expect wider price swings.

NXST is growing revenue faster at 62.2% — sustainability is the question.

RDDT generates stronger free cash flow (261M), providing more financial flexibility.

Bottom Line

RDDT scores higher overall (77/100 vs 72/100), backed by strong 31.4% margins and 61.1% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Nexstar Broadcasting Group Inc

COMMUNICATION SERVICES · BROADCASTING · USA

Nexstar Media Group, Inc., a broadcast television and digital media company, focuses on the acquisition, development and operation of television stations and interactive community websites and digital media services in the United States. The company is headquartered in Irving, Texas.

Reddit, Inc.

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Reddit, Inc. operates a website that organizes digital communities. The company is headquartered in San Francisco, California.

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