Reviewing Nexxen International (NASDAQ:NEXN) & Meta Platforms (NASDAQ:META)

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

Valuation and Earnings

This table compares Nexxen International and Meta Platforms’ top-line 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	1.18	-$21.49 million	($0.15)	-37.53
Meta Platforms	$134.90 billion	8.76	$39.10 billion	$17.41	26.75

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

Profitability

This table compares Nexxen International and Meta Platforms’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexxen International	-6.47%	2.94%	1.80%
Meta Platforms	32.06%	32.03%	21.21%

Institutional & Insider Ownership

54.2% of Nexxen International shares are held by institutional investors. Comparatively, 79.9% of Meta Platforms shares are held by institutional investors. 13.7% of Meta Platforms shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Nexxen International has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, Meta Platforms has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Nexxen International and Meta Platforms, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	3	0	2.75
Meta Platforms	2	3	37	2	2.89

Nexxen International currently has a consensus price target of $7.75, indicating a potential upside of 37.66%. Meta Platforms has a consensus price target of $509.80, indicating a potential upside of 9.48%. Given Nexxen International’s higher probable upside, equities research analysts plainly believe Nexxen International is more favorable than Meta Platforms.

Summary

Meta Platforms beats Nexxen International on 13 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 Meta Platforms

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California