Head to Head Contrast: Nexxen International (NASDAQ:NEXN) and Weibo (NASDAQ:WB)

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

Risk & Volatility

Nexxen International has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Weibo has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Earnings & Valuation

This table compares Nexxen International and Weibo’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexxen International	$331.99 million	1.17	-$21.49 million	($0.13)	-43.23
Weibo	$1.76 billion	1.02	$342.60 million	$1.19	6.45

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

Insider and Institutional Ownership

54.2% of Nexxen International shares are held by institutional investors. Comparatively, 68.8% of Weibo shares are held by institutional investors. 41.3% of Weibo shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nexxen International	-3.12%	4.86%	2.96%
Weibo	16.74%	10.92%	5.07%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	3	0	2.75
Weibo	2	3	2	0	2.00

Nexxen International currently has a consensus target price of $7.88, indicating a potential upside of 40.12%. Weibo has a consensus target price of $11.65, indicating a potential upside of 51.69%. Given Weibo’s higher possible upside, analysts plainly believe Weibo is more favorable than Nexxen International.

Summary

Weibo beats Nexxen International on 10 of the 14 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 Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover content in the People's Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user's trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product solutions to MCNs, unions, and e-commerce partners; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation operates as a subsidiary of Sina Corporation.