PubMatic (NASDAQ:PUBM – Get Free Report) and Nexxen International (NASDAQ:NEXN – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Insider and Institutional 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
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% |
Analyst Ratings
| 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 target price of $23.00, suggesting a potential upside of 12.52%. Nexxen International has a consensus target price of $7.88, suggesting a potential upside of 34.62%. Given Nexxen International’s stronger consensus rating and higher possible upside, analysts plainly believe Nexxen International is more favorable than PubMatic.
Volatility and Risk
PubMatic has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.
Earnings and Valuation
This table compares PubMatic 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 | |
| PubMatic | $267.01 million | 3.82 | $8.88 million | $0.21 | 97.34 |
| Nexxen International | $331.99 million | 1.22 | -$21.49 million | ($0.13) | -45.00 |
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.
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