Analyzing Nexxen International (NASDAQ:NEXN) and Dada Nexus (NASDAQ:DADA)

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

Volatility & Risk

Nexxen International has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, Dada Nexus has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nexxen International and Dada Nexus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	4	0	2.80
Dada Nexus	0	5	1	0	2.17

Nexxen International presently has a consensus price target of $10.20, indicating a potential downside of 1.83%. Dada Nexus has a consensus price target of $2.70, indicating a potential upside of 104.55%. Given Dada Nexus’ higher probable upside, analysts plainly believe Dada Nexus is more favorable than Nexxen International.

Institutional and Insider Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 59.3% of Dada Nexus shares are owned by institutional investors. 8.5% of Dada Nexus shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Nexxen International and Dada Nexus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexxen International	3.96%	7.49%	4.70%
Dada Nexus	-20.95%	-12.70%	-9.56%

Valuation & Earnings

This table compares Nexxen International and Dada Nexus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexxen International	$349.11 million	1.96	-$21.49 million	$0.04	259.75
Dada Nexus	$9.98 billion	0.03	-$275.71 million	($1.11)	-1.19

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

Summary

Nexxen International beats Dada Nexus on 10 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 Dada Nexus

Dada Nexus Limited operates a platform of local on-demand retail and delivery in the People’s Republic of China. It operates Dada Now, a local on-demand delivery platform that provides intra-city delivery and last-mile delivery services on an on-demand basis to chain merchants, small- and medium-sized enterprise merchants, and individual senders; and JDDJ, a local on-demand retail platforms for consumers, retailers, and brand owners. The company was incorporated in 2014 and is headquartered in Shanghai, China.