Head to Head Comparison: Nexxen International (NASDAQ:NEXN) and PubMatic (NASDAQ:PUBM)

PubMatic (NASDAQ:PUBM) and Nexxen International (NASDAQ:NEXN) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Institutional & Insider Ownership

64.3% of PubMatic shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. 2.9% of PubMatic shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PubMatic	4.42%	4.21%	1.95%
Nexxen International	-3.12%	4.86%	2.96%

Risk & Volatility

PubMatic has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for PubMatic and Nexxen International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PubMatic	0	2	4	0	2.67
Nexxen International	0	1	3	0	2.75

PubMatic presently has a consensus price target of $23.00, indicating a potential upside of 13.24%. Nexxen International has a consensus price target of $7.88, indicating a potential upside of 40.12%. Given Nexxen International’s stronger consensus rating and higher probable upside, analysts clearly believe Nexxen International is more favorable than PubMatic.

Valuation and Earnings

This table compares PubMatic and Nexxen International’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PubMatic	$267.01 million	3.80	$8.88 million	$0.21	96.72
Nexxen International	$331.99 million	1.17	-$21.49 million	($0.13)	-43.23

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

Summary

PubMatic beats Nexxen International on 8 of the 14 factors compared between the two stocks.

About PubMatic

PubMatic, Inc., a technology company, engages in the provision of a cloud infrastructure platform that enables real-time programmatic advertising transactions for digital content creators, advertisers, agencies, agency trading desks, and demand side platforms worldwide. Its PubMatic SSP, a sell-side platform, used for the purchase and sale of digital advertising inventory for publishers and buyers. The company also provides solutions, including OpenWrap, a header bidding solution; Openwrap OTT, a prebid-powered unified bidding solution; Openwrap SDK, an enterprise-grade management tools and analytics; Connect, a solution that provides additional data and insights to publishers and buyers; Activate, which allows buyers to execute direct deals on its platform across publisher inventory; Convert, a commerce media solution; and Identity Hub, an ID management tool for publishers that leverages specialized technology?infrastructure?to simplify the complex alternative identifier marketplace. Its platform supports an array of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top (OTT), connected television, and media. The company was incorporated in 2006 and is based in Redwood City, California.

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.