Analyzing Nexxen International (NASDAQ:NEXN) and HUYA (NYSE:HUYA)

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

Insider and Institutional Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 23.2% of HUYA shares are owned by institutional investors. 1.2% of HUYA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Nexxen International and HUYA’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%
HUYA	-2.51%	0.30%	0.23%

Earnings & Valuation

This table compares Nexxen International and HUYA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexxen International	$349.11 million	1.86	-$21.49 million	$0.04	245.25
HUYA	$6.11 billion	0.11	-$28.81 million	($0.09)	-33.44

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	4	0	2.80
HUYA	0	4	2	0	2.33

Nexxen International currently has a consensus price target of $9.80, indicating a potential downside of 0.10%. HUYA has a consensus price target of $5.68, indicating a potential upside of 88.54%. Given HUYA’s higher probable upside, analysts plainly believe HUYA is more favorable than Nexxen International.

Volatility & Risk

Nexxen International has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, HUYA has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.

Summary

Nexxen International beats HUYA 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 HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.