Nexxen International (NASDAQ:NEXN) versus Yalla Group (NYSE:YALA) Critical Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nexxen International	-0.57%	5.92%	3.68%
Yalla Group	40.07%	22.50%	19.92%

Volatility and Risk

Nexxen International has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500. Comparatively, Yalla Group has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Nexxen International and Yalla Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	4	0	2.80
Yalla Group	0	0	0	0	N/A

Nexxen International presently has a consensus price target of $9.10, indicating a potential upside of 17.57%. Given Nexxen International’s higher probable upside, analysts clearly believe Nexxen International is more favorable than Yalla Group.

Institutional & Insider Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 4.7% of Yalla Group shares are owned by institutional investors. 52.2% of Yalla Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Nexxen International and Yalla Group”s 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	1.57	-$21.49 million	($0.07)	-110.56
Yalla Group	$326.04 million	2.12	$117.34 million	$0.70	6.23

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

Summary

Yalla Group beats Nexxen International on 8 of the 13 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 Yalla Group

Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company’s platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.