Critical Contrast: Professional Diversity Network (NASDAQ:IPDN) versus Rumble (NASDAQ:RUM)

Professional Diversity Network (NASDAQ:IPDN) and Rumble (NASDAQ:RUM) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

This table compares Professional Diversity Network and Rumble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Professional Diversity Network	-32.31%	-113.38%	-39.58%
Rumble	-152.81%	-62.75%	-50.56%

Institutional and Insider Ownership

27.8% of Professional Diversity Network shares are held by institutional investors. Comparatively, 26.2% of Rumble shares are held by institutional investors. 3.9% of Professional Diversity Network shares are held by insiders. Comparatively, 72.9% 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.

Earnings and Valuation

This table compares Professional Diversity Network and Rumble”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Professional Diversity Network	$7.70 million	1.20	-$4.31 million	($0.20)	-3.50
Rumble	$80.96 million	34.21	-$116.42 million	($0.63)	-11.29

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

Volatility and Risk

Professional Diversity Network has a beta of 11.89, meaning that its stock price is 1,089% more volatile than the S&P 500. Comparatively, Rumble has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Professional Diversity Network and Rumble, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Professional Diversity Network	0	0	0	0	0.00
Rumble	0	2	0	0	2.00

Rumble has a consensus target price of $8.00, indicating a potential upside of 12.52%. Given Rumble’s stronger consensus rating and higher possible upside, analysts clearly believe Rumble is more favorable than Professional Diversity Network.

Summary

Professional Diversity Network beats Rumble on 7 of the 13 factors compared between the two stocks.

About Professional Diversity Network

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. It operates through three segments: Professional Diversity Network (PDN Network), National Association of Professional Women (NAPW Network), and RemoteMore USA (RemoteMore). The company offers online professional job seeking communities that offers recruitment services, such as single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, hiring campaign marketing and advertising, e-newsletter marketing, and research and outreach services to various cultural groups and employers. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its websites; and contracted software development services. In addition, the company operates a women-only professional networking organization; and offers companies with talented engineers to provide solutions to their software needs. Professional Diversity Network, Inc. was incorporated in 2003 and is headquartered in Chicago, Illinois.

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.