Contrasting NEXON (OTCMKTS:NEXOF) and Skillz (NYSE:SKLZ)

Skillz (NYSE:SKLZ) and NEXON (OTCMKTS:NEXOF) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Earnings and Valuation

This table compares Skillz and NEXON’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Skillz	$150.11 million	0.84	-$106.69 million	($5.11)	-1.16
NEXON	N/A	N/A	N/A	$66.24	0.28

NEXON has lower revenue, but higher earnings than Skillz. Skillz is trading at a lower price-to-earnings ratio than NEXON, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

19.4% of Skillz shares are held by institutional investors. Comparatively, 11.1% of NEXON shares are held by institutional investors. 22.7% of Skillz shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Skillz and NEXON, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skillz	0	3	2	0	2.40
NEXON	0	0	0	0	N/A

Skillz presently has a consensus target price of $10.25, indicating a potential upside of 73.43%. Given Skillz’s higher possible upside, equities research analysts clearly believe Skillz is more favorable than NEXON.

Profitability

This table compares Skillz and NEXON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Skillz	-47.40%	-40.12%	-21.34%
NEXON	N/A	N/A	N/A

About Skillz

Skillz Inc. operates a mobile game platform in the United States and internationally. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is based in San Francisco, California.

About NEXON

NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company’s PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORTS FIFA ONLINE 4. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. NEXON Co., Ltd. was founded in 1994 and is headquartered in Tokyo, Japan.