Financial Analysis: Yalla Group (NYSE:YALA) and Rumble (NASDAQ:RUM)

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

Institutional and Insider Ownership

4.7% of Yalla Group shares are held by institutional investors. Comparatively, 26.1% of Rumble shares are held by institutional investors. 52.2% of Yalla Group shares are held by insiders. Comparatively, 45.1% of Rumble shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Yalla Group and Rumble, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yalla Group	0	1	0	0	2.00
Rumble	2	1	0	0	1.33

Rumble has a consensus target price of $25.00, suggesting a potential upside of 346.03%. Given Rumble’s higher possible upside, analysts clearly believe Rumble is more favorable than Yalla Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yalla Group	40.78%	16.82%	15.14%
Rumble	-134.60%	-22.77%	-16.34%

Risk and Volatility

Yalla Group has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Rumble has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Earnings & Valuation

This table compares Yalla Group and Rumble”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yalla Group	$341.94 million	2.53	$149.84 million	$0.77	7.33
Rumble	$117.66 million	23.62	-$81.83 million	($0.59)	-9.50

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

Summary

Yalla Group beats Rumble on 9 of the 13 factors compared between the two stocks.

About Yalla Group

Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company’s platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.

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.