Contrasting Nexxen International (NASDAQ:NEXN) and Trade Desk (NASDAQ:TTD)

Trade Desk (NASDAQ:TTD) and Nexxen International (NASDAQ:NEXN) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Trade Desk and Nexxen International, as reported by MarketBeat.com.

	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 presently has a consensus target price of $119.45, suggesting a potential upside of 65.76%. Nexxen International has a consensus target price of $20.40, suggesting a potential upside of 128.19%. Given Nexxen International’s higher possible upside, analysts clearly believe Nexxen International is more favorable than Trade Desk.

Earnings and Valuation

This table compares Trade Desk and Nexxen International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trade Desk	$2.44 billion	14.55	$393.08 million	$0.78	92.38
Nexxen International	$349.11 million	1.65	-$21.49 million	$0.04	223.50

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.

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 & 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Trade Desk has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

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.