Meta Platforms (NASDAQ:META) & Tremor International (NASDAQ:TRMR) Critical Review

Meta Platforms (NASDAQ:META) and Tremor International (NASDAQ:TRMR) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Meta Platforms has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Tremor International has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.

Insider & Institutional Ownership

79.9% of Meta Platforms shares are owned by institutional investors. Comparatively, 7.9% of Tremor International shares are owned by institutional investors. 13.8% of Meta Platforms shares are owned by insiders. Comparatively, 8.2% of Tremor International shares are owned 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 Recommendations

This is a summary of current ratings and price targets for Meta Platforms and Tremor International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meta Platforms	1	3	38	2	2.93
Tremor International	0	1	4	0	2.80

Meta Platforms currently has a consensus price target of $509.18, indicating a potential upside of 15.36%. Tremor International has a consensus price target of $7.30, indicating a potential upside of 32.49%. Given Tremor International’s higher probable upside, analysts clearly believe Tremor International is more favorable than Meta Platforms.

Profitability

This table compares Meta Platforms and Tremor International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meta Platforms	28.98%	29.48%	19.54%
Tremor International	-5.72%	3.11%	1.89%

Valuation and Earnings

This table compares Meta Platforms and Tremor International’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meta Platforms	$134.90 billion	8.34	$39.10 billion	$14.90	29.62
Tremor International	$343.77 million	1.16	$22.74 million	($0.14)	-39.36

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

Summary

Meta Platforms beats Tremor International on 13 of the 15 factors compared between the two stocks.

About Meta Platforms

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California

About Tremor International

Tremor International Ltd provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Taptica International Ltd. and changed its name to Tremor International Ltd in September 2015. Tremor International Ltd was incorporated in 2007 and is headquartered in Tel Aviv-Yafo, Israel.