Analyzing GAN (NASDAQ:GAN) & Vimeo (NASDAQ:VMEO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vimeo	6.48%	6.72%	4.26%
GAN	-9.84%	N/A	-15.85%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Vimeo and GAN, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vimeo	0	1	2	0	2.67
GAN	0	0	0	0	0.00

Vimeo currently has a consensus price target of $8.67, indicating a potential upside of 59.31%. Given Vimeo’s stronger consensus rating and higher probable upside, analysts plainly believe Vimeo is more favorable than GAN.

Institutional & Insider Ownership

85.0% of Vimeo shares are owned by institutional investors. Comparatively, 16.7% of GAN shares are owned by institutional investors. 6.3% of Vimeo shares are owned by insiders. Comparatively, 8.5% of GAN shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vimeo	$417.01 million	2.15	$22.03 million	$0.16	34.00
GAN	$134.02 million	0.60	-$34.44 million	($0.30)	-5.90

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

Risk & Volatility

Vimeo has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500. Comparatively, GAN has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.

Summary

Vimeo beats GAN on 13 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 GAN

GAN Limited operates as a business-to-business (B2B) supplier of enterprise software-as-a-service solutions to online casino gaming and sports betting applications in the United States, Europe, Latin America, and internationally. It operates through two segments: B2B and B2C. The company provides and licenses GameSTACK, an internet gaming platform that provides turnkey technology solution for regulated real-money internet gambling, online sports betting, and virtual simulated gaming. It offers Real Money iGaming, GAN sports retail and online sportsbook, super remote gaming server, Simulated Gaming, iSight Back Office, iBridge Framework, and development services; development, marketing, and customer support services designed to fast-track deployments and provide ongoing operational support services. In addition, the company offers online sports betting, online casino game, and peer-to-peer poker services through its coolbet.com website. It serves regional operators and individual tribal casino operators. GAN Limited was incorporated in 1999 and is headquartered in Irvine, California.