Analyzing Nexxen International (NASDAQ:NEXN) & Trade Desk (NASDAQ:TTD)

Nexxen International (NASDAQ:NEXN) and Trade Desk (NASDAQ:TTD) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Nexxen International and Trade Desk, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	4	0	2.80
Trade Desk	1	4	23	1	2.83

Nexxen International presently has a consensus target price of $20.40, indicating a potential upside of 128.19%. Trade Desk has a consensus target price of $119.45, indicating a potential upside of 65.76%. Given Nexxen International’s higher possible upside, equities research analysts plainly believe Nexxen International is more favorable than Trade Desk.

Earnings and Valuation

This table compares Nexxen International and Trade Desk”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexxen International	$349.11 million	1.65	-$21.49 million	$0.04	223.50
Trade Desk	$2.44 billion	14.55	$393.08 million	$0.78	92.38

Trade Desk has higher revenue and earnings than Nexxen International. Trade Desk is trading at a lower price-to-earnings ratio than Nexxen International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nexxen International and Trade Desk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexxen International	3.96%	7.49%	4.70%
Trade Desk	16.08%	16.38%	7.69%

Insider and Institutional Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 67.8% of Trade Desk shares are owned by institutional investors. 9.7% of Trade Desk shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Nexxen International has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, Trade Desk has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Summary

Trade Desk beats Nexxen International on 12 of the 15 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 Trade Desk

The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.