Head-To-Head Survey: VNET Group (NASDAQ:VNET) & Rumble (NASDAQ:RUM)

VNET Group (NASDAQ:VNET) and Rumble (NASDAQ:RUM) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for VNET Group and Rumble, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VNET Group	0	0	2	0	3.00
Rumble	0	2	0	0	2.00

VNET Group currently has a consensus price target of $3.35, indicating a potential upside of 15.92%. Rumble has a consensus price target of $8.00, indicating a potential upside of 46.52%. Given Rumble’s higher possible upside, analysts plainly believe Rumble is more favorable than VNET Group.

Profitability

This table compares VNET Group and Rumble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VNET Group	-34.62%	-11.44%	-2.57%
Rumble	-163.37%	-54.31%	-44.57%

Risk & Volatility

VNET Group has a beta of -0.32, suggesting that its share price is 132% less volatile than the S&P 500. Comparatively, Rumble has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Institutional & Insider Ownership

72.8% of VNET Group shares are owned by institutional investors. Comparatively, 26.2% of Rumble shares are owned by institutional investors. 12.1% of VNET Group shares are owned by insiders. Comparatively, 72.9% of Rumble shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares VNET Group and Rumble”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VNET Group	$1.04 billion	0.71	-$372.38 million	($2.64)	-1.09
Rumble	$80.96 million	26.24	-$116.42 million	($0.64)	-8.53

Rumble has lower revenue, but higher earnings 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.

Summary

VNET Group beats Rumble on 7 of the 13 factors compared between the two stocks.

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.

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.