CEVA (NASDAQ:CEVA – Get Free Report) and Rumble (NASDAQ:RUM – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
Institutional and Insider Ownership
85.4% of CEVA shares are owned by institutional investors. Comparatively, 26.1% of Rumble shares are owned by institutional investors. 2.4% of CEVA shares are owned by company insiders. Comparatively, 70.1% of Rumble shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares CEVA and Rumble”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CEVA | $106.94 million | 6.06 | -$8.79 million | ($0.37) | -73.22 |
Rumble | $95.49 million | 36.66 | -$116.42 million | ($1.64) | -4.91 |
CEVA has higher revenue and earnings than Rumble. CEVA is trading at a lower price-to-earnings ratio than Rumble, 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 CEVA and Rumble, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CEVA | 0 | 0 | 5 | 0 | 3.00 |
Rumble | 0 | 1 | 1 | 0 | 2.50 |
CEVA presently has a consensus price target of $38.60, suggesting a potential upside of 42.49%. Rumble has a consensus price target of $14.00, suggesting a potential upside of 73.70%. Given Rumble’s higher probable upside, analysts plainly believe Rumble is more favorable than CEVA.
Profitability
This table compares CEVA and Rumble’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CEVA | -8.22% | -2.48% | -2.16% |
Rumble | -152.81% | -62.75% | -50.56% |
Volatility and Risk
CEVA has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Rumble has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.
Summary
CEVA beats Rumble on 10 of the 14 factors compared between the two stocks.
About CEVA
CEVA, Inc. provides silicon and software IP solutions to semiconductor and original equipment manufacturer (OEM) companies worldwide. Its 5G mobile and infrastructure products include Ceva-XC vector digital signal processors (DSPs) for 5G handsets, 5G RAN, and general-purpose baseband processing; PentaG-RAN, an open ran platform for base station and radio; and PentaG2 – 5G NR modem platform for UE, as well as for non-handset 5G vertical markets, such as fixed wireless access, industry 4.0, robotics, and AR/VR devices. The company’s wireless IoT products comprise RivieraWaves’ Bluetooth 5dual mode and low energy platforms, RivieraWaves’ Wi-Fi platforms, ultra-wide band platforms, and Cellular IoT and RedCap platforms, as well as sense and inference processors and platforms consist of NeuPro-M neural processing unit (NPU) family; SensPro2 sensor hub AI platforms addressing imaging, vision, powertrain, and applications, including DSP processors, AI accelerators, and a software portfolio; and Ceva-BX1 and Ceva-BX2 audio AI DSPs. Its sensing and audio software comprise RealSpace spatial audio software package; WhisPro speech recognition; ClearVox, a voice front-end software package for voice-enabled devices; and CDNN, a neural network graph compiler that enables AI developers to automatically compile, optimize, and run pre-trained networks onto embedded devices. The company’s application software IP are licensed primarily to OEMs who embed it in their system on chip designs. It delivers AI DSPs and NPUs in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools, which facilitate system design, debug, and software development. The company licenses its technology through a direct sales force. CEVA, Inc. was formerly known as ParthusCeva, Inc. and changed its name to CEVA, Inc. in December 2003. The company was incorporated in 1999 and is headquartered in Rockville, Maryland.
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.
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