Comparing Verizon Communications (NYSE:VZ) and Nexxen International (NASDAQ:NEXN)

Nexxen International (NASDAQ:NEXN) and Verizon Communications (NYSE:VZ) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Earnings and Valuation

This table compares Nexxen International and Verizon Communications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nexxen International	$365.48 million	1.02	$35.44 million	$0.60	11.00
Verizon Communications	$134.79 billion	1.31	$17.51 billion	$4.68	8.98

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

Insider and Institutional Ownership

54.2% of Nexxen International shares are owned by institutional investors. Comparatively, 62.1% of Verizon Communications shares are owned by institutional investors. 0.1% of Verizon Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Nexxen International and Verizon Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nexxen International	0	2	9	0	2.82
Verizon Communications	0	13	6	2	2.48

Nexxen International presently has a consensus target price of $12.60, indicating a potential upside of 90.91%. Verizon Communications has a consensus target price of $47.41, indicating a potential upside of 12.83%. Given Nexxen International’s stronger consensus rating and higher probable upside, analysts clearly believe Nexxen International is more favorable than Verizon Communications.

Profitability

This table compares Nexxen International and Verizon Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nexxen International	10.46%	12.23%	7.88%
Verizon Communications	14.43%	19.31%	5.19%

Volatility & Risk

Nexxen International has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Verizon Communications has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Summary

Verizon Communications beats Nexxen International on 9 of the 15 factors compared between the two stocks.

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.

About Verizon Communications

Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smart watches, and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States, as well as Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network. The Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and conferencing, corporate networking, security and managed network, local and long-distance voice, and network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.