Reviewing Rumble (NASDAQ:RUM) and VNET Group (NASDAQ:VNET)
by Amy Steele · The Cerbat GemRumble (NASDAQ:RUM – Get Free Report) and VNET Group (NASDAQ:VNET – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Rumble and VNET Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rumble | 0 | 2 | 0 | 0 | 2.00 |
| VNET Group | 0 | 0 | 2 | 0 | 3.00 |
Rumble currently has a consensus target price of $8.00, indicating a potential upside of 48.42%. VNET Group has a consensus target price of $3.35, indicating a potential upside of 4.36%. Given Rumble’s higher possible upside, equities analysts clearly believe Rumble is more favorable than VNET Group.
Valuation & Earnings
This table compares Rumble 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 | |
| Rumble | $78.58 million | 26.61 | -$116.42 million | ($0.64) | -8.42 |
| VNET Group | $1.04 billion | 0.79 | -$372.38 million | ($2.64) | -1.22 |
Rumble has higher earnings, but lower revenue than VNET Group. Rumble is trading at a lower price-to-earnings ratio than VNET Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
26.1% of Rumble shares are held by institutional investors. Comparatively, 72.8% of VNET Group shares are held by institutional investors. 72.9% of Rumble shares are held by insiders. Comparatively, 12.1% of VNET Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Rumble and VNET Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rumble | -163.37% | -54.31% | -44.57% |
| VNET Group | -34.62% | -11.44% | -2.57% |
Volatility and Risk
Rumble has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, VNET Group has a beta of -0.32, suggesting that its stock price is 132% less volatile than the S&P 500.
Summary
VNET Group beats Rumble on 8 of the 14 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 VNET Group
VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. 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.