Nexxen International (NASDAQ:NEXN – Get Free Report) and Liberty Latin America (NASDAQ:LILA – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Analyst Recommendations
This is a summary of current ratings for Nexxen International and Liberty Latin America, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexxen International | 0 | 0 | 9 | 0 | 3.00 |
| Liberty Latin America | 1 | 1 | 0 | 1 | 2.33 |
Nexxen International currently has a consensus target price of $14.3333, indicating a potential upside of 44.78%. Liberty Latin America has a consensus target price of $6.50, indicating a potential downside of 13.91%. Given Nexxen International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Nexxen International is more favorable than Liberty Latin America.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexxen International | $365.48 million | 1.72 | $35.44 million | $0.51 | 19.41 |
| Liberty Latin America | $4.46 billion | 0.34 | -$657.00 million | ($5.93) | -1.27 |
Nexxen International has higher earnings, but lower revenue than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Nexxen International, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 18.5% of Liberty Latin America shares are owned by institutional investors. 12.0% of Liberty Latin America 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.
Profitability
This table compares Nexxen International and Liberty Latin America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexxen International | 11.90% | 12.64% | 8.23% |
| Liberty Latin America | -26.61% | -77.72% | -9.37% |
Volatility and Risk
Nexxen International has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Summary
Nexxen International beats Liberty Latin America on 12 of the 15 factors compared between the two stocks.
About Nexxen International
Tremor International Ltd provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. 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 Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Taptica International Ltd. and changed its name to Tremor International Ltd in September 2015. Tremor International Ltd was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.
About Liberty Latin America
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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