Head-To-Head Analysis: Vimeo (NASDAQ:VMEO) versus Oblong (NYSE:OBLG)

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

Profitability

This table compares Vimeo and Oblong’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%
Oblong	-138.72%	-78.25%	-62.41%

Earnings and Valuation

This table compares Vimeo and Oblong”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	1.87	$22.03 million	$0.20	23.80
Oblong	$3.05 million	0.81	-$4.38 million	N/A	N/A

Vimeo has higher revenue and earnings than Oblong.

Analyst Ratings

This is a breakdown of current ratings and target prices for Vimeo and Oblong, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vimeo	0	2	1	0	2.33
Oblong	0	0	0	0	N/A

Vimeo currently has a consensus price target of $5.33, suggesting a potential upside of 12.04%. Given Vimeo’s higher possible upside, equities analysts clearly believe Vimeo is more favorable than Oblong.

Insider and Institutional Ownership

85.0% of Vimeo shares are owned by institutional investors. Comparatively, 2.0% of Oblong shares are owned by institutional investors. 6.3% of Vimeo shares are owned by company insiders. Comparatively, 1.0% of Oblong shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Vimeo has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500. Comparatively, Oblong has a beta of 3.2, indicating that its stock price is 220% more volatile than the S&P 500.

Summary

Vimeo beats Oblong on 10 of the 11 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 Oblong

Oblong, Inc., together with its subsidiaries, provides multi-stream collaboration technologies and managed services for video collaboration and network applications in the United States and internationally. The company operates in two segments, Collaboration Products and Managed Services. Its flagship product is Mezzanine that enables visual collaboration across multi-users, multi-screens, multi-devices, and multi-locations for video telepresence, laptop and application sharing, and whiteboard sharing and slides applications. The company also provides managed videoconferencing services; and remote service management, which offers an overlay to enterprise information technology and channel partner support organizations, as well as support and management services for customer video environments. In addition, it provides network solutions, including Cloud Connect: Video that allows its customers to outsource the management of their video traffic to them and provides the customer's office locations with a secure, dedicated video network connection to the Oblong Cloud for video communications; Cloud Connect: Converge, which offers customized multiprotocol label switching solutions; and Cloud Connect: Cross Connect that allows the customer to leverage existing carrier for the extension of a Layer 2 private line to its data center. The company serves a range of industries comprising aerospace, consulting, executive search, broadcast media, legal, insurance, technology, financial services, education, healthcare, real estate, retail, construction, hospitality, and others, as well as government sector. Oblong, Inc. is based in Denver, Colorado.