Comparing HUYA (NYSE:HUYA) & Vimeo (NASDAQ:VMEO)

HUYA (NYSE:HUYA) and Vimeo (NASDAQ:VMEO) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for HUYA and Vimeo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HUYA	0	4	2	0	2.33
Vimeo	0	2	2	0	2.50

HUYA presently has a consensus target price of $5.68, suggesting a potential upside of 68.65%. Vimeo has a consensus target price of $7.50, suggesting a potential upside of 2.46%. Given HUYA’s higher probable upside, analysts clearly believe HUYA is more favorable than Vimeo.

Earnings & Valuation

This table compares HUYA and Vimeo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HUYA	$6.11 billion	0.13	-$28.81 million	($0.09)	-37.39
Vimeo	$417.21 million	2.91	$22.03 million	$0.20	36.60

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HUYA	-2.51%	0.30%	0.23%
Vimeo	8.08%	8.56%	5.38%

Institutional and Insider Ownership

23.2% of HUYA shares are held by institutional investors. Comparatively, 85.0% of Vimeo shares are held by institutional investors. 1.2% of HUYA shares are held by company insiders. Comparatively, 6.3% of Vimeo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

HUYA has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Vimeo has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500.

Summary

Vimeo beats HUYA on 11 of the 13 factors compared between the two stocks.

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.

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.