Reviewing Nexxen International (NASDAQ:NEXN) and Sound Group (NASDAQ:SOGP)

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

Institutional & Insider Ownership

54.2% of Nexxen International shares are held by institutional investors. Comparatively, 1.6% of Sound Group shares are held by institutional investors. 25.2% of Sound Group shares are held by company 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 Sound Group’s 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%
Sound Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Nexxen International and Sound Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	4	0	2.80
Sound Group	0	0	0	0	0.00

Nexxen International presently has a consensus price target of $18.00, suggesting a potential upside of 118.71%. Given Nexxen International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Nexxen International is more favorable than Sound Group.

Valuation and Earnings

This table compares Nexxen International and Sound Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexxen International	$365.48 million	1.43	-$21.49 million	$0.39	21.10
Sound Group	$1.77 billion	0.01	-$17.84 million	N/A	N/A

Sound Group has higher revenue and earnings than Nexxen International.

Risk and Volatility

Nexxen International has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, Sound Group has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Summary

Nexxen International beats Sound Group on 9 of the 12 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 Sound Group

Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.