Critical Analysis: Nexxen International (NASDAQ:NEXN) versus Internet Initiative Japan (OTCMKTS:IIJIY)

Nexxen International (NASDAQ:NEXN) and Internet Initiative Japan (OTCMKTS:IIJIY) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Risk & Volatility

Nexxen International has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Insider and Institutional Ownership

54.2% of Nexxen International shares are held by institutional investors. 6.7% of Internet Initiative Japan shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Nexxen International and Internet Initiative Japan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	4	0	2.80
Internet Initiative Japan	0	0	0	0	0.00

Nexxen International currently has a consensus price target of $9.30, indicating a potential downside of 5.01%. Given Nexxen International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Nexxen International is more favorable than Internet Initiative Japan.

Earnings and Valuation

This table compares Nexxen International and Internet Initiative Japan”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexxen International	$349.11 million	1.87	-$21.49 million	$0.04	244.75
Internet Initiative Japan	$1.91 billion	1.90	$136.83 million	$1.42	27.92

Internet Initiative Japan has higher revenue and earnings than Nexxen International. Internet Initiative Japan 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 Nexxen International and Internet Initiative Japan’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%
Internet Initiative Japan	6.46%	15.21%	6.97%

Summary

Internet Initiative Japan beats Nexxen International on 8 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 Internet Initiative Japan

Internet Initiative Japan Inc. provides Internet connectivity, WAN, outsourcing, systems integration, and network-related equipment sales services in Japan. It operates through two segments, Network Services and Systems Integration Business, and ATM Operation Business. The company offers mobile communication and remote access/telework services; WAN/network services, including SDN, multi-cloud network, closed connection, internet VPN, SEIL, remote access, wireless LAN, and GIGA-school; leased line and broadband services; IIJ DNS platform, and domain name registration and maintenance services; IIJ access ID management, dial-up access, and IIJ IPv6 fiber access services; and security solutions for IIJ managed firewall, DDoS protection, and managed IPS/IDS services. It also provides cloud solutions, such as HaaS/IaaS, cloud storage, monitoring/operation, virtual desktop, Paas/Saas, solution for Microsoft and AWS, IoT/M2M, ID management and authentication, network, global, mobile, license, and specialized solutions, as well as IIJ cloud exchange and IIJ cloud integration solutions; integrated, network, mail, and web security, endpoint, security assessment/consulting, web and mail hosting, online storage, content delivery/CDN/CMS, and system integration; IoT services and solutions in the field of industrial, agriculture, energy, and IoT-oriented mobile communication; industry-specific solution; content delivery; and global/privacy products. In addition, the company offers IT outsourcing, IIJ consulting, cognitive factory, IIJ PC deployment support, IIJ PaaS solution, IIJ EMM utilization support, IIJ private cloud, network solutions, IIJ security audit, IIJ malware analysis, IIJ content management, cloud integration solution for Microsoft and AWS, Microsoft 365 transition support solution, data center service, and data center construction engineering solutions, as well as DX edge services. The company was incorporated in 1992 and is headquartered in Tokyo, Japan.