Head to Head Analysis: PubMatic (NASDAQ:PUBM) & Nexxen International (NASDAQ:NEXN)

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

Institutional and Insider Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 64.3% of PubMatic shares are owned by institutional investors. 2.9% of PubMatic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Nexxen International and PubMatic’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%
PubMatic	4.42%	4.21%	1.95%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nexxen International and PubMatic, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	3	0	2.75
PubMatic	0	2	4	0	2.67

Nexxen International presently has a consensus target price of $7.88, indicating a potential upside of 40.12%. PubMatic has a consensus target price of $23.00, indicating a potential upside of 13.24%. Given Nexxen International’s stronger consensus rating and higher possible upside, equities analysts plainly believe Nexxen International is more favorable than PubMatic.

Risk and Volatility

Nexxen International has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500. Comparatively, PubMatic has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Earnings and Valuation

This table compares Nexxen International and PubMatic’s 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
PubMatic	$278.31 million	3.64	$8.88 million	$0.21	96.71

PubMatic has lower revenue, but higher earnings 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 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 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.