Critical Review: Cardlytics (NASDAQ:CDLX) versus Nexxen International (NASDAQ:NEXN)

Nexxen International (NASDAQ:NEXNGet Free Report) and Cardlytics (NASDAQ:CDLXGet Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Insider and Institutional Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 68.1% of Cardlytics shares are owned by institutional investors. 4.4% of Cardlytics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Nexxen International has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500. Comparatively, Cardlytics has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares Nexxen International and Cardlytics’ 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%
Cardlytics -93.55% -110.67% -32.70%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexxen International 0 1 4 0 2.80
Cardlytics 1 5 0 1 2.14

Nexxen International currently has a consensus price target of $9.80, indicating a potential downside of 5.13%. Cardlytics has a consensus price target of $6.92, indicating a potential upside of 83.47%. Given Cardlytics’ higher possible upside, analysts clearly believe Cardlytics is more favorable than Nexxen International.

Valuation & Earnings

This table compares Nexxen International and Cardlytics”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 $349.11 million 1.96 -$21.49 million $0.04 258.25
Cardlytics $293.47 million 0.65 -$134.70 million ($6.11) -0.62

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

Summary

Nexxen International beats Cardlytics on 11 of the 15 factors compared between the two stocks.

About Nexxen International

(Get Free Report)

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 Cardlytics

(Get Free Report)

Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.

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