Head to Head Survey: Locafy (NASDAQ:LCFY) and Rumble (NASDAQ:RUM)

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

Valuation & Earnings

This table compares Rumble and Locafy’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rumble	$80.96 million	29.71	-$116.42 million	($0.57)	-10.93
Locafy	$4.29 million	1.10	-$2.62 million	($2.19)	-1.69

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

Insider & Institutional Ownership

26.2% of Rumble shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 72.9% of Rumble shares are held by insiders. Comparatively, 28.7% of Locafy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Rumble and Locafy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rumble	0	1	0	0	2.00
Locafy	0	0	0	0	N/A

Rumble currently has a consensus price target of $12.00, suggesting a potential upside of 92.62%. Given Rumble’s higher possible upside, equities analysts plainly believe Rumble is more favorable than Locafy.

Volatility & Risk

Rumble has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Locafy has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Profitability

This table compares Rumble and Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rumble	-143.79%	-38.52%	-32.78%
Locafy	-68.40%	-115.46%	-52.86%

Summary

Rumble beats Locafy on 8 of the 11 factors compared between the two stocks.

About Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a 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 subscription platform for creators and subscribers to engage through VOD, podcasts, live chat, polls, and community discussions; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.