Trade Desk (NASDAQ:TTD – Get Free Report) and Nexxen International (NASDAQ:NEXN – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
Earnings & Valuation
This table compares Trade Desk and Nexxen International”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Trade Desk | $2.44 billion | 15.14 | $393.08 million | $0.78 | 96.13 |
Nexxen International | $349.11 million | 1.53 | -$21.49 million | $0.04 | 206.50 |
Trade Desk has higher revenue and earnings than Nexxen International. Trade Desk 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 Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Trade Desk | 1 | 4 | 23 | 1 | 2.83 |
Nexxen International | 0 | 1 | 4 | 0 | 2.80 |
Trade Desk currently has a consensus price target of $119.45, indicating a potential upside of 59.31%. Nexxen International has a consensus price target of $20.40, indicating a potential upside of 146.97%. Given Nexxen International’s higher probable upside, analysts plainly believe Nexxen International is more favorable than Trade Desk.
Volatility & Risk
Trade Desk has a beta of 1.45, suggesting that its stock price is 45% more 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 Trade Desk and Nexxen International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Trade Desk | 16.08% | 16.38% | 7.69% |
Nexxen International | 3.96% | 7.49% | 4.70% |
Insider and Institutional Ownership
67.8% of Trade Desk shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. 9.7% of Trade Desk shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Trade Desk beats Nexxen International on 12 of the 15 factors compared between the two stocks.
About Trade Desk
The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, 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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