Vimeo (NASDAQ:VMEO) and Snap (NYSE:SNAP) Head-To-Head Analysis

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

Volatility and Risk

Vimeo has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500. Comparatively, Snap has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vimeo	5.28%	6.07%	3.64%
Snap	-26.99%	-45.02%	-14.29%

Institutional and Insider Ownership

85.0% of Vimeo shares are owned by institutional investors. Comparatively, 47.5% of Snap shares are owned by institutional investors. 6.3% of Vimeo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Vimeo and Snap’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vimeo	$417.21 million	1.45	$22.03 million	$0.13	27.62
Snap	$4.61 billion	5.40	-$1.32 billion	($0.81)	-18.59

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Vimeo and Snap, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vimeo	0	1	0	0	2.00
Snap	2	15	9	0	2.27

Vimeo presently has a consensus price target of $4.00, suggesting a potential upside of 11.42%. Snap has a consensus price target of $14.79, suggesting a potential downside of 1.80%. Given Vimeo’s higher probable upside, equities analysts clearly believe Vimeo is more favorable than Snap.

Summary

Vimeo beats Snap on 10 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 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.