Comparing Vimeo (NASDAQ:VMEO) and Match Group (NASDAQ:MTCH)

Vimeo (NASDAQ:VMEO) and Match Group (NASDAQ:MTCH) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Risk & Volatility

Vimeo has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, Match Group has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Insider and Institutional Ownership

85.0% of Vimeo shares are owned by institutional investors. Comparatively, 94.1% of Match Group shares are owned by institutional investors. 6.3% of Vimeo shares are owned by insiders. Comparatively, 0.7% of Match Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vimeo	$417.21 million	2.07	$22.03 million	$0.17	30.71
Match Group	$3.36 billion	2.68	$651.54 million	$2.30	15.23

Match Group has higher revenue and earnings than Vimeo. Match Group is trading at a lower price-to-earnings ratio than Vimeo, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vimeo and Match Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vimeo	7.85%	8.59%	5.32%
Match Group	18.72%	-467.66%	14.83%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Vimeo and Match Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vimeo	0	2	1	0	2.33
Match Group	0	7	12	2	2.76

Vimeo currently has a consensus price target of $5.33, suggesting a potential upside of 2.17%. Match Group has a consensus price target of $42.07, suggesting a potential upside of 20.12%. Given Match Group’s stronger consensus rating and higher possible upside, analysts plainly believe Match Group is more favorable than Vimeo.

Summary

Match Group beats Vimeo on 11 of the 15 factors compared between the two stocks.

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.

About Match Group

Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users' likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, Texas.