Financial Comparison: CEVA (NASDAQ:CEVA) & Vimeo (NASDAQ:VMEO)

Vimeo (NASDAQ:VMEO) and CEVA (NASDAQ:CEVA) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

85.0% of Vimeo shares are held by institutional investors. Comparatively, 85.4% of CEVA shares are held by institutional investors. 6.3% of Vimeo shares are held by insiders. Comparatively, 2.4% of CEVA 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.

Risk & Volatility

Vimeo has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, CEVA has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares Vimeo and CEVA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vimeo	7.85%	8.59%	5.32%
CEVA	-7.02%	-3.77%	-3.28%

Earnings & Valuation

This table compares Vimeo and CEVA’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vimeo	$421.08 million	2.05	$22.03 million	$0.17	30.00
CEVA	$97.42 million	5.85	-$11.88 million	($0.53)	-45.38

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Vimeo and CEVA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vimeo	0	2	1	0	2.33
CEVA	0	0	4	0	3.00

Vimeo presently has a consensus price target of $5.33, suggesting a potential upside of 4.58%. CEVA has a consensus price target of $28.50, suggesting a potential upside of 18.50%. Given CEVA’s stronger consensus rating and higher possible upside, analysts plainly believe CEVA is more favorable than Vimeo.

Summary

Vimeo beats CEVA on 9 of the 14 factors compared between the two stocks.

About Vimeo

Vimeo, Inc., together with its subsidiaries, provides video software solutions worldwide. It provides the video tools through a software-as-a-service model, which enables its users to create, collaborate, and communicate with video on a single platform. The company also offers over-the-top OTT streaming and monetization services; AI-driven video creation and editing tools; and interactive and shoppable video tools. It serves large organizations, small businesses, creative professionals, marketers, and digital agencies. The company was founded in 2004 and is headquartered in New York, New York.

About CEVA

CEVA, Inc. provides silicon and software IP solutions to semiconductor and original equipment manufacturer (OEM) companies worldwide. Its 5G mobile and infrastructure products include Ceva-XC vector digital signal processors (DSPs) for 5G handsets, 5G RAN, and general-purpose baseband processing; PentaG-RAN, an open ran platform for base station and radio; and PentaG2 – 5G NR modem platform for UE, as well as for non-handset 5G vertical markets, such as fixed wireless access, industry 4.0, robotics, and AR/VR devices. The company’s wireless IoT products comprise RivieraWaves’ Bluetooth 5dual mode and low energy platforms, RivieraWaves’ Wi-Fi platforms, ultra-wide band platforms, and Cellular IoT and RedCap platforms, as well as sense and inference processors and platforms consist of NeuPro-M neural processing unit (NPU) family; SensPro2 sensor hub AI platforms addressing imaging, vision, powertrain, and applications, including DSP processors, AI accelerators, and a software portfolio; and Ceva-BX1 and Ceva-BX2 audio AI DSPs. Its sensing and audio software comprise RealSpace spatial audio software package; WhisPro speech recognition; ClearVox, a voice front-end software package for voice-enabled devices; and CDNN, a neural network graph compiler that enables AI developers to automatically compile, optimize, and run pre-trained networks onto embedded devices. The company’s application software IP are licensed primarily to OEMs who embed it in their system on chip designs. It delivers AI DSPs and NPUs in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools, which facilitate system design, debug, and software development. The company licenses its technology through a direct sales force. CEVA, Inc. was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. The company was incorporated in 1999 and is headquartered in Rockville, Maryland.