Analyzing Pinterest (NYSE:PINS) & Vimeo (NASDAQ:VMEO)

Vimeo (NASDAQ:VMEO) and Pinterest (NYSE:PINS) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Institutional and Insider 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vimeo	$421.08 million	2.03	$22.03 million	$0.17	29.71
Pinterest	$3.34 billion	6.48	-$35.61 million	$0.21	150.76

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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Vimeo and Pinterest, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vimeo	0	2	1	0	2.33
Pinterest	0	8	23	0	2.74

Vimeo currently has a consensus price target of $5.33, suggesting a potential upside of 5.61%. Pinterest has a consensus price target of $42.87, suggesting a potential upside of 35.39%. Given Pinterest’s stronger consensus rating and higher possible upside, analysts plainly believe Pinterest is more favorable than Vimeo.

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%
Pinterest	5.75%	6.94%	5.93%

Risk & Volatility

Vimeo has a beta of 2.09, meaning that its stock price is 109% more volatile than the S&P 500. Comparatively, Pinterest has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

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.