Rumble (NASDAQ:RUM) versus HUYA (NYSE:HUYA) Financial Analysis

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

Volatility and Risk

Rumble has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, HUYA has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Rumble and HUYA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rumble	0	2	1	0	2.33
HUYA	0	4	2	0	2.33

Rumble presently has a consensus price target of $14.00, suggesting a potential upside of 33.33%. HUYA has a consensus price target of $5.68, suggesting a potential upside of 43.85%. Given HUYA’s higher possible upside, analysts plainly believe HUYA is more favorable than Rumble.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rumble	-152.81%	-62.75%	-50.56%
HUYA	-2.51%	0.30%	0.23%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rumble	$80.96 million	50.55	-$116.42 million	($0.63)	-16.67
HUYA	$985.13 million	0.91	-$28.81 million	($0.09)	-43.83

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

Institutional & Insider Ownership

26.2% of Rumble shares are owned by institutional investors. Comparatively, 23.2% of HUYA shares are owned by institutional investors. 70.1% of Rumble shares are owned by company insiders. Comparatively, 1.2% of HUYA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

HUYA beats Rumble on 9 of the 13 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 HUYA

HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.