Reviewing Integral Ad Science (NASDAQ:IAS) & Nexxen International (NASDAQ:NEXN)

Nexxen International (NASDAQ:NEXN) and Integral Ad Science (NASDAQ:IAS) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Nexxen International and Integral Ad Science, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	1	3	0	2.75
Integral Ad Science	0	3	10	0	2.77

Nexxen International presently has a consensus target price of $7.75, suggesting a potential upside of 34.08%. Integral Ad Science has a consensus target price of $17.38, suggesting a potential upside of 75.60%. Given Integral Ad Science’s stronger consensus rating and higher probable upside, analysts plainly believe Integral Ad Science is more favorable than Nexxen International.

Volatility and Risk

Nexxen International has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Integral Ad Science has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Insider and Institutional Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 95.8% of Integral Ad Science shares are owned by institutional investors. 2.0% of Integral Ad Science shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Nexxen International and Integral Ad Science’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexxen International	-6.47%	2.94%	1.80%
Integral Ad Science	1.53%	0.83%	0.62%

Valuation and Earnings

This table compares Nexxen International and Integral Ad Science’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexxen International	$331.99 million	1.21	-$21.49 million	($0.15)	-38.53
Integral Ad Science	$474.37 million	3.33	$7.24 million	$0.04	247.56

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

Summary

Integral Ad Science beats Nexxen International 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 Integral Ad Science

Integral Ad Science Holding Corp. operates as a digital advertising verification company in the United States, the United Kingdom, France, Ireland, Germany, Italy, Singapore, Australia, Japan, India, and the Nordics. The company provides IAS Signal, a cloud-based technology platform that offers return on ad spend needs; and deliver independent measurement and verification of digital advertising across devices, channels, and formats, including desktop, mobile, connected TV, social, display, and video. Its digital media quality solutions offer ad fraud detection and prevention, viewability, brand safety and suitability, contextual targeting, inventory yield management, and reporting. In addition, the company offers Quality Impressions, a metric designed to verify that digital ads are served to a real person rather than a bot, viewable on-screen, and presented in a brand-safe and suitable environment in the correct geography; Context Control solution that delivers contextual targeting and brand suitability capabilities; pre-bid programmatic and post-bid verification solutions for advertisers; and optimization and verification solutions for publishers. It serves advertisers and agencies, publishers, and supply side platforms. The company was founded in 2009 and is headquartered in New York, New York.