Critical Survey: Vimeo (NASDAQ:VMEO) & EverQuote (NASDAQ:EVER)

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

Insider & Institutional Ownership

85.0% of Vimeo shares are owned by institutional investors. Comparatively, 91.5% of EverQuote shares are owned by institutional investors. 6.3% of Vimeo shares are owned by insiders. Comparatively, 29.8% of EverQuote shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Vimeo and EverQuote’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%
EverQuote	3.31%	13.94%	9.24%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vimeo and EverQuote, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vimeo	0	1	2	0	2.67
EverQuote	0	0	5	1	3.17

Vimeo presently has a consensus target price of $8.67, indicating a potential upside of 65.39%. EverQuote has a consensus target price of $32.33, indicating a potential upside of 21.74%. Given Vimeo’s higher probable upside, research analysts clearly believe Vimeo is more favorable than EverQuote.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vimeo	$417.01 million	2.07	$22.03 million	$0.16	32.75
EverQuote	$500.19 million	1.90	-$51.29 million	$0.86	30.88

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

Volatility & Risk

Vimeo has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500. Comparatively, EverQuote has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Summary

EverQuote beats Vimeo on 10 of the 15 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 EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.