Nextech3D.AI (OTCMKTS:NEXCF) vs. AppLovin (NASDAQ:APP) Critical Analysis

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppLovin	$4.71 billion	38.79	$1.58 billion	$8.24	65.60
Nextech3D.AI	$2.32 million	10.95	-$3.78 million	($0.04)	-2.82

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.

Volatility & Risk

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

Profitability

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

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

Analyst Recommendations

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

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

AppLovin currently has a consensus target price of $706.45, indicating a potential upside of 30.68%. Given AppLovin’s stronger consensus rating and higher probable upside, analysts clearly believe AppLovin is more favorable than Nextech3D.AI.

Institutional & Insider Ownership

41.9% of AppLovin shares are held by institutional investors. 13.7% of AppLovin shares are held by insiders. Comparatively, 14.3% of Nextech3D.AI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

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

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.

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.