Zoom Video Communications (NASDAQ:ZM) & Nexxen International (NASDAQ:NEXN) Head-To-Head Analysis

Zoom Video Communications (NASDAQ:ZM) and Nexxen International (NASDAQ:NEXN) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares Zoom Video Communications 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
Zoom Video Communications	$4.63 billion	5.24	$637.46 million	$3.00	26.39
Nexxen International	$349.11 million	1.84	-$21.49 million	$0.04	244.50

Zoom Video Communications has higher revenue and earnings than Nexxen International. Zoom Video 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zoom Video Communications	20.34%	10.98%	8.89%
Nexxen International	3.96%	7.49%	4.70%

Volatility and Risk

Zoom Video Communications has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Zoom Video Communications and Nexxen International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoom Video Communications	1	15	8	1	2.36
Nexxen International	0	1	4	0	2.80

Zoom Video Communications presently has a consensus target price of $87.81, suggesting a potential upside of 10.90%. Nexxen International has a consensus target price of $10.20, suggesting a potential upside of 4.29%. Given Zoom Video Communications’ higher probable upside, analysts plainly believe Zoom Video Communications is more favorable than Nexxen International.

Insider & Institutional Ownership

66.5% of Zoom Video Communications shares are held by institutional investors. Comparatively, 54.2% of Nexxen International shares are held by institutional investors. 10.8% of Zoom Video Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Zoom Video Communications beats Nexxen International on 12 of the 15 factors compared between the two stocks.

About Zoom Video Communications

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom’s video-based communications solutions, as well as integrate Zoom’s technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, 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.