Vimeo (NASDAQ:VMEO – Get Free Report) and Pinterest (NYSE:PINS – Get Free Report) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Risk & Volatility
Vimeo has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, Pinterest has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Insider and Institutional Ownership
85.0% of Vimeo shares are owned by institutional investors. Comparatively, 88.8% of Pinterest shares are owned by institutional investors. 6.3% of Vimeo shares are owned by insiders. Comparatively, 7.1% of Pinterest shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vimeo | 0 | 2 | 1 | 0 | 2.33 |
| 0 | 8 | 22 | 0 | 2.73 |
Vimeo currently has a consensus price target of $5.33, suggesting a potential upside of 6.67%. Pinterest has a consensus price target of $43.25, suggesting a potential upside of 32.00%. Given Pinterest’s stronger consensus rating and higher probable upside, analysts clearly believe Pinterest is more favorable than Vimeo.
Valuation & Earnings
This table compares Vimeo and Pinterest”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vimeo | $417.21 million | 1.99 | $22.03 million | $0.17 | 29.41 |
| $3.34 billion | 6.71 | -$35.61 million | $0.21 | 156.02 |
Vimeo has higher earnings, but lower revenue than Pinterest. Vimeo is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Vimeo and Pinterest’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% |
| 5.75% | 6.94% | 5.93% |
Summary
Pinterest beats Vimeo on 10 of the 14 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 Pinterest
Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
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