Analyzing Vimeo (NASDAQ:VMEO) and Tremor International (NASDAQ:TRMR)

Tremor International (NASDAQ:TRMR) and Vimeo (NASDAQ:VMEO) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Tremor International and Vimeo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tremor International	0	1	4	0	2.80
Vimeo	0	1	0	0	2.00

Tremor International presently has a consensus price target of $7.30, suggesting a potential upside of 32.49%. Vimeo has a consensus price target of $4.00, suggesting a potential upside of 14.29%. Given Tremor International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Tremor International is more favorable than Vimeo.

Institutional & Insider Ownership

7.9% of Tremor International shares are owned by institutional investors. Comparatively, 85.0% of Vimeo shares are owned by institutional investors. 8.2% of Tremor International shares are owned by company insiders. Comparatively, 7.9% of Vimeo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Tremor International has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Vimeo has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tremor International	-5.72%	3.11%	1.89%
Vimeo	5.28%	6.07%	3.64%

Earnings and Valuation

This table compares Tremor International and Vimeo’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tremor International	$343.77 million	1.16	$22.74 million	($0.14)	-39.36
Vimeo	$417.21 million	1.41	$22.03 million	$0.13	26.93

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

Summary

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

About Tremor International

Tremor International Ltd provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Taptica International Ltd. and changed its name to Tremor International Ltd in September 2015. Tremor International Ltd was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.

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.