Financial Analysis: Tremor International (NASDAQ:TRMR) & Meta Platforms (NASDAQ:META)

Tremor International (NASDAQ:TRMR) and Meta Platforms (NASDAQ:META) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Insider & Institutional Ownership

7.9% of Tremor International shares are owned by institutional investors. Comparatively, 79.9% of Meta Platforms shares are owned by institutional investors. 8.2% of Tremor International shares are owned by company insiders. Comparatively, 14.0% of Meta Platforms shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Tremor International has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, Meta Platforms has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Profitability

This table compares Tremor International and Meta Platforms’ 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%
Meta Platforms	28.98%	29.48%	19.54%

Earnings & Valuation

This table compares Tremor International and Meta Platforms’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tremor International	$343.77 million	1.20	$22.74 million	($0.14)	-40.64
Meta Platforms	$134.90 billion	9.38	$39.10 billion	$14.90	33.30

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tremor International	0	1	4	0	2.80
Meta Platforms	1	3	38	2	2.93

Tremor International currently has a consensus price target of $7.30, indicating a potential upside of 28.30%. Meta Platforms has a consensus price target of $520.28, indicating a potential upside of 4.87%. Given Tremor International’s higher possible upside, research analysts clearly believe Tremor International is more favorable than Meta Platforms.

Summary

Meta Platforms beats Tremor International on 13 of the 15 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 Meta Platforms

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California