Magnite (NASDAQ:MGNI) & Rumble (NASDAQ:RUM) Critical Review

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

Earnings & Valuation

This table compares Rumble and Magnite”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rumble	$85.65 million	38.59	-$116.42 million	($0.63)	-13.46
Magnite	$668.17 million	2.92	-$159.18 million	$0.14	97.36

Rumble has higher earnings, but lower revenue 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.

Profitability

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

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

Risk & Volatility

Rumble has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Magnite has a beta of 2.79, meaning that its stock price is 179% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rumble and Magnite, as reported by MarketBeat.com.

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

Rumble currently has a consensus target price of $14.00, indicating a potential upside of 65.09%. Magnite has a consensus target price of $19.27, indicating a potential upside of 41.37%. Given Rumble’s higher probable upside, equities research analysts clearly believe Rumble is more favorable than Magnite.

Insider and Institutional Ownership

26.1% of Rumble shares are held by institutional investors. Comparatively, 73.4% of Magnite shares are held by institutional investors. 70.1% of Rumble shares are held by insiders. Comparatively, 4.3% of Magnite shares are held 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.

Summary

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

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.

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.