Critical Analysis: EverQuote (NASDAQ:EVER) and Nexxen International (NASDAQ:NEXN)

EverQuote (NASDAQ:EVER) and Nexxen International (NASDAQ:NEXN) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

91.5% of EverQuote shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. 29.8% of EverQuote shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

EverQuote has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500.

Profitability

This table compares EverQuote and Nexxen International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EverQuote	3.31%	13.94%	9.24%
Nexxen International	3.96%	7.49%	4.70%

Earnings & Valuation

This table compares EverQuote and Nexxen International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EverQuote	$408.44 million	2.23	-$51.29 million	$0.34	75.71
Nexxen International	$349.11 million	1.55	-$21.49 million	$0.04	209.50

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for EverQuote and Nexxen International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EverQuote	0	0	5	1	3.17
Nexxen International	0	1	4	0	2.80

EverQuote currently has a consensus price target of $32.33, indicating a potential upside of 25.62%. Nexxen International has a consensus price target of $20.40, indicating a potential upside of 143.44%. Given Nexxen International’s higher possible upside, analysts clearly believe Nexxen International is more favorable than EverQuote.

Summary

EverQuote beats Nexxen International on 10 of the 15 factors compared between the two stocks.

About EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.

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.