IAC (NASDAQ:IAC – Get Free Report) and Rumble (NASDAQ:RUM – Get Free Report) are both mid-cap multi-sector conglomerates companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Profitability
This table compares IAC and Rumble’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IAC | -2.54% | -3.31% | -2.14% |
| Rumble | -161.62% | -46.51% | -38.66% |
Institutional & Insider Ownership
88.9% of IAC shares are owned by institutional investors. Comparatively, 26.1% of Rumble shares are owned by institutional investors. 20.5% of IAC shares are owned by company insiders. Comparatively, 72.9% of Rumble shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IAC | 0 | 1 | 9 | 0 | 2.90 |
| Rumble | 0 | 2 | 0 | 0 | 2.00 |
IAC currently has a consensus target price of $76.40, suggesting a potential upside of 49.25%. Rumble has a consensus target price of $8.00, suggesting a potential upside of 29.66%. Given IAC’s stronger consensus rating and higher probable upside, equities analysts clearly believe IAC is more favorable than Rumble.
Risk and Volatility
IAC has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Rumble has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
Valuation and Earnings
This table compares IAC and Rumble’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IAC | $4.05 billion | 1.02 | $265.94 million | ($1.58) | -32.40 |
| Rumble | $78.58 million | 30.46 | -$116.42 million | ($0.64) | -9.64 |
IAC has higher revenue and earnings than Rumble. IAC is trading at a lower price-to-earnings ratio than Rumble, indicating that it is currently the more affordable of the two stocks.
Summary
IAC beats Rumble on 10 of the 14 factors compared between the two stocks.
About IAC
IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.
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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