IAC (NASDAQ:IAC) and Rumble (NASDAQ:RUM) Financial Contrast

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

Earnings & Valuation

This table compares Rumble and IAC’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rumble	$80.96 million	32.34	-$116.42 million	($0.64)	-10.55
IAC	$4.37 billion	0.95	$265.94 million	($1.58)	-32.56

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

Risk & Volatility

Rumble has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, IAC has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Rumble and IAC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rumble	0	2	0	0	2.00
IAC	0	1	11	0	2.92

Rumble presently has a consensus target price of $8.00, indicating a potential upside of 18.52%. IAC has a consensus target price of $80.25, indicating a potential upside of 56.01%. Given IAC’s stronger consensus rating and higher possible upside, analysts plainly believe IAC is more favorable than Rumble.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rumble	-161.62%	-46.51%	-38.66%
IAC	-2.54%	-3.31%	-2.14%

Insider & Institutional Ownership

26.2% of Rumble shares are owned by institutional investors. Comparatively, 88.9% of IAC shares are owned by institutional investors. 72.9% of Rumble shares are owned by insiders. Comparatively, 20.5% of IAC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

IAC beats Rumble on 10 of the 13 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 IAC

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.