Entravision Communications (NYSE:EVC – Get Free Report) and Nexxen International (NASDAQ:NEXN – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Risk & Volatility
Entravision Communications has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.
Profitability
This table compares Entravision Communications and Nexxen International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Entravision Communications | 0.62% | 6.98% | 1.17% |
| Nexxen International | 3.41% | 7.03% | 4.38% |
Earnings and Valuation
This table compares Entravision Communications and Nexxen International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Entravision Communications | $679.88 million | 1.17 | -$79.17 million | $0.01 | 863.50 |
| Nexxen International | $364.78 million | 1.38 | $25.04 million | $0.22 | 40.25 |
Nexxen International has lower revenue, but higher earnings than Entravision Communications. Nexxen International is trading at a lower price-to-earnings ratio than Entravision Communications, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Entravision Communications and Nexxen International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Entravision Communications | 0 | 1 | 0 | 0 | 2.00 |
| Nexxen International | 0 | 2 | 9 | 0 | 2.82 |
Nexxen International has a consensus price target of $12.89, suggesting a potential upside of 45.55%. Given Nexxen International’s stronger consensus rating and higher possible upside, analysts plainly believe Nexxen International is more favorable than Entravision Communications.
Insider & Institutional Ownership
69.5% of Entravision Communications shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. 9.1% of Entravision Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Nexxen International beats Entravision Communications on 9 of the 14 factors compared between the two stocks.
About Entravision Communications
Entravision Communications Corporation operates as an advertising solutions, media, and technology company worldwide. The company operates through three segments: Digital, Television, and Audio. It reaches and engages Hispanics in the United States. The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties. It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services; and Smadex, a programmatic ad purchasing platform that enables advertisers to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces. In addition, the company provides a mobile growth solution, such as managed services to advertisers to reach mobile device users; and digital advertising solutions for advertisers. Further, it owns and operates TelevisaUnivision-affiliated television stations. The company operates various television stations; radio stations; and Spanish-language radio stations. Entravision Communications Corporation was founded in 1996 and is headquartered in Santa Monica, California.
About Nexxen International
Tremor International Ltd provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. 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 Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Taptica International Ltd. and changed its name to Tremor International Ltd in September 2015. Tremor International Ltd was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.
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