Critical Analysis: Nexxen International (NASDAQ:NEXN) & Match Group (NASDAQ:MTCH)

Nexxen International (NASDAQ:NEXN) and Match Group (NASDAQ:MTCH) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Insider and Institutional Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 94.1% of Match Group shares are owned by institutional investors. 0.7% of Match Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Nexxen International and Match Group’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	$331.99 million	1.22	-$21.49 million	($0.13)	-45.00
Match Group	$3.36 billion	2.33	$651.54 million	$2.30	12.80

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

Analyst Ratings

This is a summary of current recommendations for Nexxen International and Match Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	3	0	2.75
Match Group	0	7	11	0	2.61

Nexxen International currently has a consensus target price of $7.88, indicating a potential upside of 34.62%. Match Group has a consensus target price of $42.67, indicating a potential upside of 44.90%. Given Match Group’s higher possible upside, analysts clearly believe Match Group is more favorable than Nexxen International.

Profitability

This table compares Nexxen International and Match Group’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%
Match Group	19.03%	-433.59%	14.95%

Risk and Volatility

Nexxen International has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Match Group has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Summary

Match Group beats Nexxen International on 11 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 Match Group

Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users' likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, Texas.