Contrasting Snap (NYSE:SNAP) and Rumble (NASDAQ:RUM)

Snap (NYSE:SNAP) and Rumble (NASDAQ:RUM) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Insider and Institutional Ownership

47.5% of Snap shares are owned by institutional investors. Comparatively, 26.2% of Rumble shares are owned by institutional investors. 22.7% of Snap shares are owned by company insiders. Comparatively, 70.1% of Rumble shares are owned 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.

Earnings and Valuation

This table compares Snap and Rumble”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap	$5.36 billion	3.27	-$697.86 million	($0.42)	-24.63
Rumble	$80.96 million	50.55	-$116.42 million	($0.63)	-16.67

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

Analyst Ratings

This is a summary of current recommendations for Snap and Rumble, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap	1	25	7	0	2.18
Rumble	0	2	1	0	2.33

Snap currently has a consensus target price of $36.87, indicating a potential upside of 256.45%. Rumble has a consensus target price of $14.00, indicating a potential upside of 33.33%. Given Snap’s higher possible upside, equities analysts clearly believe Snap is more favorable than Rumble.

Profitability

This table compares Snap and Rumble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap	-13.02%	-25.67%	-7.55%
Rumble	-152.81%	-62.75%	-50.56%

Risk and Volatility

Snap has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Rumble has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Summary

Snap beats Rumble on 9 of the 14 factors compared between the two stocks.

About Snap

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

About Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.