Critical Contrast: KLDiscovery (OTCMKTS:KLDI) and Rumble (NASDAQ:RUM)

KLDiscovery (OTCMKTS:KLDI) and Rumble (NASDAQ:RUM) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KLDiscovery	$345.80 million	0.00	-$34.81 million	($1.56)	-0.01
Rumble	$80.96 million	62.10	-$116.42 million	($0.63)	-20.48

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

Volatility & Risk

KLDiscovery has a beta of -0.64, suggesting that its stock price is 164% less volatile than the S&P 500. Comparatively, Rumble has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Insider & Institutional Ownership

20.4% of KLDiscovery shares are owned by institutional investors. Comparatively, 26.2% of Rumble shares are owned by institutional investors. 31.6% of KLDiscovery shares are owned by company insiders. Comparatively, 72.9% of Rumble shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KLDiscovery	-20.91%	N/A	-9.45%
Rumble	-152.81%	-62.75%	-50.56%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for KLDiscovery and Rumble, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KLDiscovery	0	0	0	0	0.00
Rumble	0	2	1	0	2.33

Rumble has a consensus price target of $14.00, indicating a potential upside of 8.53%. Given Rumble’s stronger consensus rating and higher possible upside, analysts plainly believe Rumble is more favorable than KLDiscovery.

Summary

Rumble beats KLDiscovery on 8 of the 14 factors compared between the two stocks.

About KLDiscovery

KLDiscovery Inc. provides eDiscovery, information governance, and data recovery solutions to corporations, law firms, insurance companies, and individuals worldwide. The company offers Nebula, an end-to-end eDiscovery solution that facilitates smarter ways to cull, process, review, and manage documents in an intuitive interface; Client Portal for consolidated visualizations and reporting for portfolio intelligence; KLD Processing, a proprietary processing application; ReadySuite to perform extensive QC on a production, normalize inbound submissions, or spot check the work of a colleague or supplier; Relativity for relativity enhancements and state-of-the-art HIVE infrastructure; Nebula Processing to process data with a higher degree of quality; and Nebula AI, a technology assisted review tool combined with a deep bench of experts, as well as managed services, remote document review, and managed document review services. It also provides computer forensics, ransomware data recovery, remote collection manager, data recovery, and data collection services. In addition, the company offers Nebula Archive, an advanced archiving solution for modern enterprise data management needs at scale; Nebula Intelligent Archive, a digital communications compliance platform with machine learning and analytics; and Office 365 Migration and Management, as well as information governance and advisory services. Further, it provides Ontrack EasyRecovery that allows clients to perform precise file recovery of data lost through deletion, reformatting, and various other data loss scenarios; Ontrack PowerControls, a granular restore software product; email extraction, tape solutions, and data destruction solutions; and professional services. KLDiscovery Inc. was founded in 1985 and is headquartered in Eden Prairie, Minnesota.

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.