Contrasting HUYA (NYSE:HUYA) and Rumble (NASDAQ:RUM)

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

Volatility and Risk

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

Institutional and Insider Ownership

23.2% of HUYA shares are owned by institutional investors. Comparatively, 26.1% of Rumble shares are owned by institutional investors. 1.2% of HUYA shares are owned by insiders. Comparatively, 70.1% of Rumble shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares HUYA and Rumble’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%
Rumble	-152.81%	-62.75%	-50.56%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HUYA	$6.11 billion	0.14	-$28.81 million	($0.09)	-42.94
Rumble	$85.65 million	41.77	-$116.42 million	($0.63)	-14.57

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.

Analyst Ratings

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

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

HUYA currently has a consensus target price of $5.68, indicating a potential upside of 46.83%. Rumble has a consensus target price of $14.00, indicating a potential upside of 52.51%. Given Rumble’s higher probable upside, analysts clearly believe Rumble is more favorable than HUYA.

Summary

HUYA beats Rumble on 8 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 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.