Nexxen International (NASDAQ:NEXN – Get Free Report) and Yalla Group (NYSE:YALA – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Insider & Institutional Ownership
54.2% of Nexxen International shares are held by institutional investors. Comparatively, 4.7% of Yalla Group shares are held by institutional investors. 52.2% of Yalla Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Nexxen International and Yalla Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexxen International | 0 | 1 | 4 | 0 | 2.80 |
| Yalla Group | 0 | 0 | 0 | 0 | N/A |
Profitability
This table compares Nexxen International and Yalla Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexxen International | -0.57% | 5.92% | 3.68% |
| Yalla Group | 40.07% | 22.50% | 19.92% |
Valuation and Earnings
This table compares Nexxen International and Yalla Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexxen International | $331.99 million | 1.60 | -$21.49 million | ($0.07) | -112.84 |
| Yalla Group | $318.88 million | 2.13 | $117.34 million | $0.71 | 6.03 |
Yalla Group has lower revenue, but higher earnings than Nexxen International. Nexxen International is trading at a lower price-to-earnings ratio than Yalla Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Nexxen International has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Yalla Group has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
Summary
Yalla Group beats Nexxen International on 8 of the 13 factors compared between the two stocks.
About Nexxen International
Nexxen International Ltd. provides end-to-end software platform that enables advertisers to reach publishers Israel. The company’s demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Tremor International Ltd and changed its name to Nexxen International Ltd. in January 2024. Nexxen International Ltd. was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.
About Yalla Group
Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company’s platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.
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