Contrasting Taboola.com (NASDAQ:TBLA) and Nexxen International (NASDAQ:NEXN)

Nexxen International (NASDAQ:NEXNGet Free Report) and Taboola.com (NASDAQ:TBLAGet Free Report) 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 earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Insider and Institutional Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 42.9% of Taboola.com shares are owned by institutional investors. 22.4% of Taboola.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Nexxen International and Taboola.com”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexxen International $331.99 million 2.00 -$21.49 million $0.04 249.25
Taboola.com $1.44 billion 0.72 -$82.04 million ($0.10) -35.30

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

Risk & Volatility

Nexxen International has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Nexxen International and Taboola.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexxen International 0 1 4 0 2.80
Taboola.com 0 0 4 0 3.00

Nexxen International presently has a consensus target price of $9.30, indicating a potential downside of 6.72%. Taboola.com has a consensus target price of $5.31, indicating a potential upside of 50.50%. Given Taboola.com’s stronger consensus rating and higher possible upside, analysts plainly believe Taboola.com is more favorable than Nexxen International.

Profitability

This table compares Nexxen International and Taboola.com’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%
Taboola.com -1.96% -1.68% -1.04%

Summary

Nexxen International beats Taboola.com on 9 of the 13 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 Taboola.com

(Get Free Report)

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.

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