Snap (NYSE:SNAP – Get Free Report) and Rumble (NASDAQ:RUM – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Volatility and Risk
Snap has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Rumble has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.
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% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Snap | $5.36 billion | 3.39 | -$1.32 billion | ($0.42) | -25.80 |
| Rumble | $85.65 million | 52.42 | -$116.42 million | ($0.63) | -18.29 |
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 Recommendations
This is a summary of current ratings and recommmendations for Snap and Rumble, as reported by MarketBeat.
| 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 presently has a consensus target price of $36.87, suggesting a potential upside of 240.33%. Rumble has a consensus target price of $14.00, suggesting a potential upside of 21.53%. Given Snap’s higher possible upside, analysts clearly believe Snap is more favorable than Rumble.
Insider and Institutional Ownership
47.5% of Snap shares are owned by institutional investors. Comparatively, 26.1% 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
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.
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