Critical Survey: Rumble (NASDAQ:RUM) versus QuoteMedia (OTCMKTS:QMCI)

QuoteMedia (OTCMKTS:QMCI) and Rumble (NASDAQ:RUM) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings for QuoteMedia and Rumble, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuoteMedia	0	1	0	0	2.00
Rumble	2	1	0	0	1.33

Rumble has a consensus target price of $25.00, suggesting a potential upside of 306.50%. Given Rumble’s higher probable upside, analysts clearly believe Rumble is more favorable than QuoteMedia.

Volatility & Risk

QuoteMedia has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500. Comparatively, Rumble has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Institutional & Insider Ownership

26.1% of Rumble shares are owned by institutional investors. 47.1% of QuoteMedia shares are owned by insiders. Comparatively, 45.1% of Rumble shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares QuoteMedia and Rumble”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuoteMedia	$20.25 million	0.68	-$2.32 million	($0.02)	-7.60
Rumble	$117.66 million	25.92	-$81.83 million	($0.59)	-10.42

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuoteMedia	-9.06%	N/A	-34.83%
Rumble	-134.60%	-22.77%	-16.34%

About QuoteMedia

QuoteMedia, Inc. provides financial data, market research information, analytics, news feeds, and financial software solutions to online brokerages, banks, clearing firms, financial service companies, media portals, and public corporations worldwide. It collects, aggregates, and delivers delayed and real-time financial data content through the Internet. The company also offers market information and services, including streaming stock market data feeds, research and analysis information, content applications, portfolio management systems, software products, corporate investor relations provisioning, news services, mobile apps, and custom development. In addition, its data feeds coverage includes equities, options, futures, commodities, currencies, mutual funds, ETFs, and indices. Further, the company provides financial data delivery application products and components comprising quote modules, charts, market movers, news, watch lists, tickers, market summaries, option chains, filings, fundamentals, investor relations solutions, stock and fund screeners, and others; and QMod, a web delivery system for delivering market data content to Web platforms. Additionally, it offers portfolio managements systems, including Quotestream Desktop, We, and Mobile, a Web-delivered, embedded application providing real-time, tick-by-tick, streaming market quotes and research information; Quotestream Professional that offers low-latency tick-by-tick data, customizable screens, advanced charting, comprehensive technical analysis, news, and research data for financial services professionals; Web Portfolio Manager, which provides immediate web access to detailed quote data, market and company news, charting, depth/level II, filings, historical data, snap quotes, and others; and Quotestream Connect that delivers real time data feeds to individual users to power third party applications. The company was incorporated in 1992 and is headquartered in Fountain Hills, Arizona.

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.