WallStSmart

Nexstar Broadcasting Group Inc (NXST)vsSpotify Technology SA (SPOT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Spotify Technology SA generates 220% more annual revenue ($18.81B vs $5.88B). SPOT leads profitability with a 15.7% profit margin vs 3.2%. NXST appears more attractively valued with a PEG of 0.28. NXST earns a higher WallStSmart Score of 72/100 (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

SPOT

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 4.0Quality: 8.0
Piotroski: 4/9Altman Z: 2.66
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
SPOTSignificantly Overvalued (-51.8%)

Margin of Safety

-51.8%

Fair Value

$321.01

Current Price

$538.40

$217.39 premium

UndervaluedFair: $321.01Overvalued

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%

SPOT4 strengths · Avg: 9.3/10
Return on EquityProfitability
30.6%10/10

Every $100 of equity generates 31 in profit

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Market CapQuality
$114.19B9/10

Large-cap with strong market position

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

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

SPOT3 concerns · Avg: 3.3/10
P/E RatioValuation
33.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.3x4/10

Trading at 11.3x book value

EPS GrowthGrowth
-24.5%2/10

Earnings declined 24.5%

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 : SPOT

The strongest argument for SPOT centers on Return on Equity, Debt/Equity, Market Cap. Profitability is solid with margins at 15.7% and operating margin at 13.5%. Revenue growth of 16.3% 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 : SPOT

The primary concerns for SPOT are P/E Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

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

SPOT carries more volatility with a beta of 1.61 — expect wider price swings.

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

SPOT generates stronger free cash flow (792M), providing more financial flexibility.

Bottom Line

NXST scores higher overall (72/100 vs 56/100) and 62.2% revenue growth. Both earn "Strong Buy" and "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.

Spotify Technology SA

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.

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