Snap (NYSE:SNAP – Get Free Report) and Vimeo (NASDAQ:VMEO – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Risk & Volatility
Snap has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Vimeo has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.
Insider and Institutional Ownership
47.5% of Snap shares are owned by institutional investors. Comparatively, 85.0% of Vimeo shares are owned by institutional investors. 7.9% of Vimeo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Snap | $4.61 billion | 4.09 | -$1.32 billion | ($0.83) | -13.73 |
| Vimeo | $417.21 million | 1.41 | $22.03 million | $0.13 | 27.00 |
Vimeo has lower revenue, but higher earnings 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 breakdown of current recommendations and price targets for Snap and Vimeo, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Snap | 3 | 11 | 6 | 0 | 2.15 |
| Vimeo | 0 | 1 | 0 | 0 | 2.00 |
Snap currently has a consensus price target of $13.86, suggesting a potential upside of 21.61%. Vimeo has a consensus price target of $4.00, suggesting a potential upside of 13.96%. Given Snap’s stronger consensus rating and higher probable upside, analysts clearly believe Snap is more favorable than Vimeo.
Profitability
This table compares Snap and Vimeo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Snap | -28.71% | -47.47% | -15.18% |
| Vimeo | 5.28% | 6.07% | 3.64% |
Summary
Vimeo beats Snap on 9 of the 14 factors compared between the two stocks.
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.
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.
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