Head to Head Contrast: Magnite (NASDAQ:MGNI) vs. Rumble (NASDAQ:RUM)

Magnite (NASDAQ:MGNI) and Rumble (NASDAQ:RUM) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

73.4% of Magnite shares are held by institutional investors. Comparatively, 26.1% of Rumble shares are held by institutional investors. 4.3% of Magnite shares are held by insiders. Comparatively, 70.1% of Rumble shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Magnite has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500. Comparatively, Rumble has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnite	2.62%	4.64%	1.25%
Rumble	-152.81%	-62.75%	-50.56%

Valuation & Earnings

This table compares Magnite and Rumble”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnite	$668.17 million	3.09	-$159.18 million	$0.14	104.93
Rumble	$85.65 million	38.73	-$116.42 million	($0.63)	-13.51

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Magnite and Rumble, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnite	0	1	12	0	2.92
Rumble	0	2	1	0	2.33

Magnite presently has a consensus price target of $19.27, suggesting a potential upside of 31.17%. Rumble has a consensus price target of $14.00, suggesting a potential upside of 64.51%. Given Rumble’s higher possible upside, analysts plainly believe Rumble is more favorable than Magnite.

Summary

Magnite beats Rumble on 10 of the 14 factors compared between the two stocks.

About Magnite

Magnite, Inc., together with its subsidiaries, operates an independent omni-channel sell-side advertising platform in the United States and internationally. The company’s platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties to manage and monetize their inventory; and applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory, as well as an independent marketplace that connects buyers and sellers. It markets its solutions through sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.

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.