Head-To-Head Review: Rumble (NASDAQ:RUM) versus Square Enix (OTCMKTS:SQNXF)

Rumble (NASDAQ:RUM) and Square Enix (OTCMKTS:SQNXF) are both mid-cap communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Insider and Institutional Ownership

26.2% of Rumble shares are held by institutional investors. 45.1% of Rumble shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Rumble and Square Enix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rumble	$100.62 million	25.18	-$81.83 million	($0.59)	-8.66
Square Enix	$1.98 billion	3.55	$195.47 million	$0.75	25.92

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

Profitability

This table compares Rumble and Square Enix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rumble	-134.60%	-22.77%	-16.34%
Square Enix	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations for Rumble and Square Enix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rumble	2	1	0	0	1.33
Square Enix	0	0	0	1	4.00

Rumble presently has a consensus price target of $25.00, indicating a potential upside of 389.24%. Given Rumble’s higher possible upside, research analysts clearly believe Rumble is more favorable than Square Enix.

Risk & Volatility

Rumble has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Square Enix has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Summary

Square Enix beats Rumble on 9 of the 14 factors compared between the two stocks.

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.

About Square Enix

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.