Rumble (NASDAQ:RUM) vs. Locafy (NASDAQ:LCFY) Financial Analysis

Rumble (NASDAQ:RUM) and Locafy (NASDAQ:LCFY) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Profitability

This table compares Rumble and Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rumble	-143.79%	-38.52%	-32.78%
Locafy	-68.40%	-115.46%	-52.86%

Insider and Institutional Ownership

26.1% of Rumble shares are owned by institutional investors. Comparatively, 0.0% of Locafy shares are owned by institutional investors. 72.9% of Rumble shares are owned by company insiders. Comparatively, 28.7% of Locafy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Rumble and Locafy’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rumble	$80.96 million	29.71	-$116.42 million	($0.57)	-10.93
Locafy	$4.29 million	1.07	-$2.62 million	($2.19)	-1.63

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

Risk & Volatility

Rumble has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Locafy has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Rumble and Locafy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rumble	0	1	0	0	2.00
Locafy	0	0	0	0	N/A

Rumble presently has a consensus price target of $12.00, suggesting a potential upside of 92.62%. Given Rumble’s higher possible upside, analysts clearly believe Rumble is more favorable than Locafy.

Summary

Rumble beats Locafy on 8 of the 12 factors compared between the two stocks.

About Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.