Critical Contrast: Nextech3D.AI (OTCMKTS:NEXCF) versus AppLovin (NASDAQ:APP)

Nextech3D.AI (OTCMKTS:NEXCF) and AppLovin (NASDAQ:APP) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Profitability

This table compares Nextech3D.AI and AppLovin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextech3D.AI	-658.40%	N/A	-588.54%
AppLovin	51.27%	258.49%	46.62%

Earnings and Valuation

This table compares Nextech3D.AI and AppLovin”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextech3D.AI	$2.32 million	11.02	-$3.78 million	($0.04)	-2.84
AppLovin	$4.71 billion	33.95	$1.58 billion	$8.24	57.42

AppLovin has higher revenue and earnings than Nextech3D.AI. Nextech3D.AI is trading at a lower price-to-earnings ratio than AppLovin, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

41.9% of AppLovin shares are held by institutional investors. 14.3% of Nextech3D.AI shares are held by company insiders. Comparatively, 13.7% of AppLovin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Nextech3D.AI and AppLovin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextech3D.AI	0	1	0	0	2.00
AppLovin	1	3	20	1	2.84

AppLovin has a consensus price target of $706.45, suggesting a potential upside of 49.32%. Given AppLovin’s stronger consensus rating and higher probable upside, analysts plainly believe AppLovin is more favorable than Nextech3D.AI.

Volatility and Risk

Nextech3D.AI has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, AppLovin has a beta of 2.5, indicating that its stock price is 150% more volatile than the S&P 500.

Summary

AppLovin beats Nextech3D.AI on 14 of the 15 factors compared between the two stocks.

About Nextech3D.AI

Nextech3D.AI Corporation provides augmented reality technologies, wayfinding technologies, and 3D model services. It focuses on creating 3D WebAR photorealistic models for the prime ecommerce marketplace, as well as other online retailers. The company was formerly known as NexTech AR Solutions Corp. and changed its name to Nextech3D.AI Corporation in September 2023. Nextech3D.AI Corporation was incorporated in 2018 and is headquartered in Toronto, Canada.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California.