OneConnect Financial Technology (NYSE:OCFT – Get Free Report) and Nexxen International (NASDAQ:NEXN – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
4.1% of OneConnect Financial Technology shares are owned by institutional investors. Comparatively, 54.2% of Nexxen International shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for OneConnect Financial Technology and Nexxen International, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
OneConnect Financial Technology | 0 | 0 | 1 | 0 | 3.00 |
Nexxen International | 0 | 1 | 4 | 0 | 2.80 |
Valuation and Earnings
This table compares OneConnect Financial Technology and Nexxen International”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
OneConnect Financial Technology | $518.92 million | 0.19 | -$51.25 million | $0.11 | 22.55 |
Nexxen International | $331.99 million | 1.99 | -$21.49 million | $0.04 | 248.75 |
Nexxen International has lower revenue, but higher earnings than OneConnect Financial Technology. OneConnect Financial Technology is trading at a lower price-to-earnings ratio than Nexxen International, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
OneConnect Financial Technology has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.
Profitability
This table compares OneConnect Financial Technology and Nexxen International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
OneConnect Financial Technology | 0.95% | -6.05% | -2.71% |
Nexxen International | 3.96% | 7.49% | 4.70% |
Summary
Nexxen International beats OneConnect Financial Technology on 9 of the 13 factors compared between the two stocks.
About OneConnect Financial Technology
OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It operates in Technology Solutions and Virtual Bank Business segments. The company offers Gamma Platform, which offers a toolbox of separate solution modules that provide technology infrastructure and underlying technologies; marketing management platform, developed from AI Banker App, provides banks relationship managers with technology that supports in managing their acquisition and relationships with retail customers; and wealth management platform that provides banks with tools to enhance the efficiency of their wealth management business. It also provides intelligent product development platform for banks, which allows to shorten product development cycle, enhance speed to market, and facilitate product portfolio management; Regtech, an end-to-end regulatory solution for financial regulatory authorities; asset-liability management solution provides analytics to enhance financial institutions asset liquidity performance; and digital insurance solutions for digitalizing the insurance process, marketing, customer management, and claim processing under intelligent property and casualty insurance and life insurance solution. In addition, the company provides Gamma Voice Solution, an AI customer service for support customer service functions; and Gamma FinCloud, which allows entities with expensive-to-replace legacy systems to directly migrate to the cloud to securely maintain their data. Further, it offers information transmission, information technology advisory, E-commerce security certificate administration, technology promotion and computer application, software and technology, insurance survey and loss adjustment, and asset management and consulting services. The company was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China.
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.
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