Contrasting NextPlay Technologies (NASDAQ:NXTP) & First Advantage (NYSE:FA)

NextPlay Technologies (NASDAQ:NXTP) and First Advantage (NYSE:FA) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for NextPlay Technologies and First Advantage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextPlay Technologies	0	0	0	0	0.00
First Advantage	0	4	2	0	2.33

First Advantage has a consensus price target of $20.00, suggesting a potential upside of 40.25%. Given First Advantage’s stronger consensus rating and higher possible upside, analysts plainly believe First Advantage is more favorable than NextPlay Technologies.

Risk and Volatility

NextPlay Technologies has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500. Comparatively, First Advantage has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares NextPlay Technologies and First Advantage”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextPlay Technologies	$8.20 million	0.00	-$37.97 million	N/A	N/A
First Advantage	$1.25 billion	1.98	$37.29 million	($0.92)	-15.50

First Advantage has higher revenue and earnings than NextPlay Technologies.

Profitability

This table compares NextPlay Technologies and First Advantage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextPlay Technologies	N/A	N/A	N/A
First Advantage	0.65%	13.16%	7.33%

Insider and Institutional Ownership

3.0% of NextPlay Technologies shares are owned by institutional investors. Comparatively, 94.9% of First Advantage shares are owned by institutional investors. 24.5% of NextPlay Technologies shares are owned by company insiders. Comparatively, 3.9% of First Advantage shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

First Advantage beats NextPlay Technologies on 10 of the 12 factors compared between the two stocks.

About NextPlay Technologies

NextPlay Technologies, Inc., a technology solutions company, provides games, in-game advertising, digital asset products and services, connected TV, and travel booking services to consumers and corporations in the United States, Puerto Rico, Europe, and Thailand. The company operates through three segments: Media, FinTech, and Travel. The Media segment provides HotPlay games studio, a game development studio that develops a range of casual games; HotPlay redemption mobile application, a digital wallet that is used to collect the HotPlay IGA rewards; HotPlay In game advertising and rewards platform, that enable advertisements and rewards to be inserted in game; goPlay platform, a gamification platform for users to compete against each other through tournaments and challenges, as well as a reward platform that rewards users for their continued loyalty and continuous game; and Zappware, a TV as a Service platform, which includes media source ingest, encoding and transcoding, packaging, protection, delivery, playback, and analytics that provide telco operators for their digital media processing, as well as a client side set top box and smart TV middleware platform, associated application framework and corresponding, and supporting content management system. The FinTech segment engages in the development of NextFinTech Platform, an integrated digital financial platform, which offers mobile banking, investments into alternative assets, and insurance to businesses and individuals. The Travel segment offers booking solutions for business and leisure; and travel technology solutions comprising alternative lodging rental properties under NextTrip ConNextions brand. The company was incorporated in 2005 and is based in Sunrise, Florida.

About First Advantage

First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and other products comprising fleet/vehicle compliance, hiring tax credits and incentives, resident/tenant screening, and investigative research. Its products and solutions are used by personnel in recruiting, human resources, risk, compliance, vendor management, safety, and/or security in global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2002 and is based in Atlanta, Georgia.