Comparing Rumble (NASDAQ:RUM) & Grom Social Enterprises (NASDAQ:GROM)

Grom Social Enterprises (NASDAQ:GROM) and Rumble (NASDAQ:RUM) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Valuation & Earnings

This table compares Grom Social Enterprises and Rumble”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grom Social Enterprises	$3.72 million	0.00	-$12.53 million	($11.67)	0.00
Rumble	$95.49 million	32.47	-$116.42 million	($1.64)	-4.35

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

Institutional and Insider Ownership

15.9% of Grom Social Enterprises shares are held by institutional investors. Comparatively, 26.1% of Rumble shares are held by institutional investors. 0.0% of Grom Social Enterprises shares are held by insiders. Comparatively, 70.1% of Rumble shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Grom Social Enterprises and Rumble, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	0.00
Rumble	0	1	1	0	2.50

Rumble has a consensus price target of $14.00, suggesting a potential upside of 96.08%. Given Rumble’s stronger consensus rating and higher possible upside, analysts plainly believe Rumble is more favorable than Grom Social Enterprises.

Risk & Volatility

Grom Social Enterprises has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Rumble has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Profitability

This table compares Grom Social Enterprises and Rumble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	N/A	N/A	N/A
Rumble	-152.81%	-62.75%	-50.56%

Summary

Rumble beats Grom Social Enterprises on 8 of the 14 factors compared between the two stocks.

About Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company in the United States and Philippines. It operates through three segments: Animation, Original Content, and Social and Technology. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.

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.