Cardlytics (NASDAQ:CDLX – Get Free Report) and Nexxen International (NASDAQ:NEXN – Get Free Report) 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 risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.
Earnings & Valuation
This table compares Cardlytics and Nexxen International”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cardlytics | $293.47 million | 0.61 | -$134.70 million | ($6.11) | -0.58 |
| Nexxen International | $349.11 million | 1.85 | -$21.49 million | $0.04 | 242.75 |
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.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cardlytics | 1 | 5 | 0 | 1 | 2.14 |
| Nexxen International | 0 | 1 | 4 | 0 | 2.80 |
Cardlytics presently has a consensus price target of $6.92, indicating a potential upside of 95.94%. Nexxen International has a consensus price target of $9.80, indicating a potential upside of 0.93%. Given Cardlytics’ higher possible upside, research analysts clearly believe Cardlytics is more favorable than Nexxen International.
Profitability
This table compares Cardlytics and Nexxen International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cardlytics | -93.55% | -110.67% | -32.70% |
| Nexxen International | 3.96% | 7.49% | 4.70% |
Volatility and Risk
Cardlytics has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.
Institutional and Insider Ownership
68.1% of Cardlytics shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. 4.4% of Cardlytics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Nexxen International beats Cardlytics on 11 of the 15 factors compared between the two stocks.
About Cardlytics
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.
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.
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