Nexxen International (NASDAQ:NEXN) versus SPAR Group (NASDAQ:SGRP) Critical Survey

SPAR Group (NASDAQ:SGRP) and Nexxen International (NASDAQ:NEXN) are both small-cap communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for SPAR Group and Nexxen International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPAR Group	1	0	0	0	1.00
Nexxen International	0	2	9	0	2.82

Nexxen International has a consensus target price of $12.89, suggesting a potential upside of 46.30%. Given Nexxen International’s stronger consensus rating and higher probable upside, analysts clearly believe Nexxen International is more favorable than SPAR Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SPAR Group	-18.51%	-107.74%	-19.90%
Nexxen International	3.41%	7.03%	4.38%

Risk & Volatility

SPAR Group has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Valuation and Earnings

This table compares SPAR Group and Nexxen International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPAR Group	$132.58 million	0.14	-$24.63 million	($1.01)	-0.66
Nexxen International	$364.78 million	1.38	$25.04 million	$0.22	40.05

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

Institutional and Insider Ownership

9.6% of SPAR Group shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. 43.0% of SPAR Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Nexxen International beats SPAR Group on 13 of the 14 factors compared between the two stocks.

About SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.

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.