Pinterest (NYSE:PINS) and Nexxen International (NASDAQ:NEXN) Critical Contrast

Pinterest (NYSE:PINS) and Nexxen International (NASDAQ:NEXN) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pinterest	5.75%	6.94%	5.93%
Nexxen International	-0.57%	5.92%	3.68%

Institutional & Insider Ownership

88.8% of Pinterest shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. 7.1% of Pinterest shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Pinterest has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pinterest and Nexxen International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinterest	0	8	21	0	2.72
Nexxen International	0	1	4	0	2.80

Pinterest currently has a consensus price target of $43.56, suggesting a potential upside of 35.98%. Nexxen International has a consensus price target of $9.10, suggesting a potential upside of 11.93%. Given Pinterest’s higher possible upside, analysts clearly believe Pinterest is more favorable than Nexxen International.

Earnings and Valuation

This table compares Pinterest 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
Pinterest	$3.34 billion	6.58	-$35.61 million	$0.27	118.63
Nexxen International	$331.99 million	1.64	-$21.49 million	($0.07)	-116.13

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

Summary

Pinterest beats Nexxen International on 11 of the 14 factors compared between the two stocks.

About Pinterest

Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

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.