Nexxen International (NASDAQ:NEXN – Get Free Report) and Cumulus Media (NASDAQ:CMLS – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Risk & Volatility
Nexxen International has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Cumulus Media has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Profitability
This table compares Nexxen International and Cumulus Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nexxen International | 3.41% | 7.03% | 4.38% |
| Cumulus Media | -18.11% | -30.27% | -5.62% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nexxen International | $364.78 million | 1.42 | $25.04 million | $0.22 | 41.23 |
| Cumulus Media | $827.08 million | 0.00 | -$117.88 million | ($17.39) | -0.00 |
Nexxen International has higher earnings, but lower revenue than Cumulus Media. Cumulus Media is trading at a lower price-to-earnings ratio than Nexxen International, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Nexxen International and Cumulus Media, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nexxen International | 0 | 2 | 9 | 0 | 2.82 |
| Cumulus Media | 0 | 1 | 0 | 0 | 2.00 |
Nexxen International presently has a consensus target price of $12.89, indicating a potential upside of 42.10%. Given Nexxen International’s stronger consensus rating and higher possible upside, analysts plainly believe Nexxen International is more favorable than Cumulus Media.
Institutional and Insider Ownership
54.2% of Nexxen International shares are held by institutional investors. Comparatively, 48.7% of Cumulus Media shares are held by institutional investors. 11.9% of Cumulus Media shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Nexxen International beats Cumulus Media on 12 of the 14 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 Cumulus Media
Cumulus Media Inc., an audio-first media company, owns and operates radio stations in the United States. It owns and operates stations in various markets, as well as affiliated stations through Westwood One. The company's content portfolio includes sports, news, talk, and entertainment programming from various brands, including the NFL, the NCAA, the Masters, CNN, AP News, the Academy of Country Music Awards, and other partners. In addition, the company provides digital marketing services, such as email marketing, geo-targeted display and video solutions, website and microsite building, hosting, social media management, reputation and listing management, and search engine marketing and optimization; influencers, audio solutions, research and insights, and live event services; and advertising performance guarantee services. The company serves advertisers through broadcast and on-demand digital, mobile, social, and voice-activated platforms. Cumulus Media Inc. was founded in 2002 and is based in Atlanta, Georgia.
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