Head-To-Head Comparison: Pinterest (NYSE:PINS) & Vimeo (NASDAQ:VMEO)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vimeo	$421.08 million	2.07	$22.03 million	$0.17	30.29
Pinterest	$3.06 billion	7.30	-$35.61 million	$0.21	154.67

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.

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets 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	22	0	2.73

Vimeo presently has a consensus target price of $5.33, indicating a potential upside of 3.56%. Pinterest has a consensus target price of $43.25, indicating a potential upside of 33.16%. Given Pinterest’s stronger consensus rating and higher possible upside, analysts clearly believe Pinterest is more favorable than Vimeo.

Insider & Institutional Ownership

85.0% of Vimeo shares are held by institutional investors. Comparatively, 88.8% of Pinterest shares are held by institutional investors. 6.3% of Vimeo shares are held by company insiders. Comparatively, 7.1% of Pinterest shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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%

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.