Head-To-Head Contrast: Tremor International (NASDAQ:TRMR) vs. Vimeo (NASDAQ:VMEO)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Tremor International and Vimeo, as reported by MarketBeat.com.

	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 currently has a consensus price target of $7.30, suggesting a potential upside of 32.01%. Vimeo has a consensus price target of $4.00, suggesting a potential upside of 8.40%. Given Tremor International’s stronger consensus rating and higher probable upside, research analysts clearly believe Tremor International is more favorable than Vimeo.

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%

Institutional & Insider Ownership

7.9% of Tremor International shares are held by institutional investors. Comparatively, 85.0% of Vimeo shares are held by institutional investors. 8.2% of Tremor International shares are held by company insiders. Comparatively, 7.9% of Vimeo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tremor International	$343.77 million	1.17	$22.74 million	($0.14)	-39.50
Vimeo	$417.21 million	1.49	$22.03 million	$0.13	28.38

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.