Reviewing Vimeo (NASDAQ:VMEO) and VNET Group (NASDAQ:VNET)

Vimeo (NASDAQ:VMEOGet Rating) and VNET Group (NASDAQ:VNETGet Rating) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vimeo $391.68 million 3.73 -$52.77 million ($0.51) -17.24
VNET Group $971.32 million 0.90 $78.48 million ($0.33) -18.15

VNET Group has higher revenue and earnings than Vimeo. VNET Group 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 recommendations for Vimeo and VNET Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vimeo 0 5 3 0 2.38
VNET Group 1 0 3 0 2.50

Vimeo currently has a consensus price target of $21.29, indicating a potential upside of 142.16%. VNET Group has a consensus price target of $22.23, indicating a potential upside of 271.04%. Given VNET Group’s stronger consensus rating and higher probable upside, analysts clearly believe VNET Group is more favorable than Vimeo.

Profitability

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

Net Margins Return on Equity Return on Assets
Vimeo -20.13% -16.66% -9.89%
VNET Group 8.09% 6.53% 2.17%

Insider and Institutional Ownership

78.9% of Vimeo shares are owned by institutional investors. 12.1% of VNET Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

VNET Group beats Vimeo on 9 of the 11 factors compared between the two stocks.

Vimeo Company Profile (Get Rating)

Vimeo, Inc., together with its subsidiaries, provides video software solutions in New York and internationally. The company 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. It 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 creative professionals, small businesses, marketers, agencies, schools, nonprofits, and large organizations. The company was incorporated in 2020 and is headquartered in New York, New York.

VNET Group Company Profile (Get Rating)

VNET Group, Inc., an investment holding company, provides hosting and related services to Internet companies, government entities, blue-chip enterprises, and small-to mid-sized enterprises in the People's Republic of China. It offers hosting and related services to house servers and networking equipment in its data centers, and connects them through a data transmission network. The company's hosting and related services include managed hosting services that offer data center space to house its customers' servers and networking equipment, and provide tailored server administration services; and interconnectivity services that enable customers to connect their servers with internet backbones and other networks through its border gateway protocol network or single-line, dual-line, or multiple-line network. Its hosting and related services also comprise cloud services that enable businesses to run their applications over the internet using its IT infrastructure; virtual private network services; hybrid IT Services, which provide customers with a complete package of infrastructure service offerings; and other value-added services, such as firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services. In addition, the company provides traffic charts and analysis, gateway monitoring for servers, domain name system setup, defense mechanism against distributed denial of service attacks, basic setting of switches and routers, and virus protections; and managed network service. As of December 31, 2020, it operated 32 self-built data centers housing 49,876 cabinets and 52 partnered data centers housing with 3,677 cabinets. It has a strategic partnership with Microsoft Corporation. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

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