Critical Review: Nexxen International (NASDAQ:NEXN) & HUYA (NYSE:HUYA)

HUYA (NYSE:HUYAGet Free Report) and Nexxen International (NASDAQ:NEXNGet Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Insider & Institutional Ownership

23.2% of HUYA shares are owned by institutional investors. Comparatively, 54.2% of Nexxen International shares are owned by institutional investors. 1.2% of HUYA shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for HUYA and Nexxen International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HUYA 0 4 2 0 2.33
Nexxen International 0 1 4 0 2.80

HUYA currently has a consensus target price of $5.68, indicating a potential upside of 83.06%. Nexxen International has a consensus target price of $9.80, indicating a potential downside of 1.31%. Given HUYA’s higher probable upside, analysts plainly believe HUYA is more favorable than Nexxen International.

Profitability

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

Net Margins Return on Equity Return on Assets
HUYA -2.51% 0.30% 0.23%
Nexxen International 3.96% 7.49% 4.70%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HUYA $6.11 billion 0.12 -$28.81 million ($0.09) -34.44
Nexxen International $349.11 million 1.88 -$21.49 million $0.04 248.25

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

Volatility and Risk

HUYA has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500.

Summary

Nexxen International beats HUYA on 11 of the 14 factors compared between the two stocks.

About HUYA

(Get Free Report)

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.

About Nexxen International

(Get Free Report)

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.

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