Analyzing DouYu International (NASDAQ:DOYU) & Nexxen International (NASDAQ:NEXN)

DouYu International (NASDAQ:DOYU) and Nexxen International (NASDAQ:NEXN) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Risk and Volatility

DouYu International has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Nexxen International has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for DouYu International and Nexxen International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DouYu International	0	1	0	0	2.00
Nexxen International	0	1	3	0	2.75

DouYu International presently has a consensus target price of $21.00, suggesting a potential upside of 111.69%. Nexxen International has a consensus target price of $7.88, suggesting a potential upside of 31.47%. Given DouYu International’s higher possible upside, equities research analysts clearly believe DouYu International is more favorable than Nexxen International.

Valuation and Earnings

This table compares DouYu International and Nexxen International’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DouYu International	$778.94 million	0.40	$5.00 million	$0.10	99.20
Nexxen International	$331.99 million	1.26	-$21.49 million	($0.13)	-46.08

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

Insider and Institutional Ownership

17.9% of DouYu International shares are owned by institutional investors. Comparatively, 54.2% of Nexxen International shares are owned by institutional investors. 17.3% of DouYu International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DouYu International	0.61%	2.27%	1.85%
Nexxen International	-3.12%	4.82%	2.95%

About DouYu International

DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People's Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, and organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, 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.