Critical Review: KnowBe4 (NASDAQ:KNBE) versus Vimeo (NASDAQ:VMEO)

Vimeo (NASDAQ:VMEOGet Rating) and KnowBe4 (NASDAQ:KNBEGet Rating) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Profitability

This table compares Vimeo and KnowBe4’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vimeo -20.85% -19.17% -11.22%
KnowBe4 2.60% 8.93% 3.49%

Valuation and Earnings

This table compares Vimeo and KnowBe4’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 2.08 -$52.77 million ($0.54) -9.07
KnowBe4 $246.30 million 12.27 -$11.85 million $0.05 346.07

KnowBe4 has lower revenue, but higher earnings than Vimeo. Vimeo is trading at a lower price-to-earnings ratio than KnowBe4, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

89.1% of Vimeo shares are held by institutional investors. Comparatively, 43.2% of KnowBe4 shares are held by institutional investors. 20.3% of Vimeo shares are held by insiders. Comparatively, 5.0% of KnowBe4 shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Vimeo and KnowBe4, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vimeo 0 4 1 0 2.20
KnowBe4 0 1 8 0 2.89

Vimeo presently has a consensus target price of $21.29, suggesting a potential upside of 334.40%. KnowBe4 has a consensus target price of $28.00, suggesting a potential upside of 61.85%. Given Vimeo’s higher probable upside, equities research analysts plainly believe Vimeo is more favorable than KnowBe4.

Volatility and Risk

Vimeo has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, KnowBe4 has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Summary

KnowBe4 beats Vimeo on 9 of the 14 factors compared between the two stocks.

About Vimeo

(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.

About KnowBe4

(Get Rating)

KnowBe4, Inc. engages in the development, marketing, and sale of its Software-as-a-Service-based security awareness platform. The company provides a platform incorporating security awareness training and simulated phishing with analytics and reporting that helps organizations manage the ongoing problem of social engineering. Its products include Kevin Mitnick Security Awareness Training, a security awareness training product; Compliance Plus, a compliance training product, which enables organizations to offer their employees with relevant, timely, and engaging compliance content across a range of topics from data privacy to diversity, equity, and inclusion; PhishER, its security orchestration, automation, and response product, which enables security professionals to prioritize and automate security workstreams in response to attacks targeted at the human layer; and KnowBe4 Compliance Manager, its governance, risk, and compliance product that enables organizations to analyze security risk and automate the management of compliance and audit functions. The company also offers Security Coach, a solution to address human behavior risks through human detection and response; and PasswordIQ that would be used to mitigate risk related to password hygiene issues, such as weak or breached passwords. It serves its customers directly through inside sales teams for enterprise and small and medium businesses, as well as indirectly through channel partners and managed service providers. The company was formerly known as SEQRIT, LLC and changed its name to KnowBe4, Inc. in January 2016. KnowBe4, Inc. was founded in 2010 and is headquartered in Clearwater, Florida.

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