Rumble (NASDAQ:RUM – Get Free Report) and Yalla Group (NYSE:YALA – Get Free Report) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Risk & Volatility
Rumble has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Yalla Group has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.
Profitability
This table compares Rumble and Yalla Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rumble | -134.60% | -22.77% | -16.34% |
| Yalla Group | 40.78% | 16.82% | 15.14% |
Earnings & Valuation
This table compares Rumble and Yalla Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rumble | $117.66 million | 24.36 | -$81.83 million | ($0.59) | -9.80 |
| Yalla Group | $341.94 million | 2.50 | $149.84 million | $0.77 | 7.25 |
Yalla Group has higher revenue and earnings than Rumble. Rumble is trading at a lower price-to-earnings ratio than Yalla Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Rumble and Yalla Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rumble | 2 | 1 | 0 | 0 | 1.33 |
| Yalla Group | 0 | 1 | 0 | 0 | 2.00 |
Rumble currently has a consensus price target of $25.00, suggesting a potential upside of 332.53%. Given Rumble’s higher probable upside, equities research analysts plainly believe Rumble is more favorable than Yalla Group.
Insider and Institutional Ownership
26.1% of Rumble shares are held by institutional investors. Comparatively, 4.7% of Yalla Group shares are held by institutional investors. 45.1% of Rumble shares are held by insiders. Comparatively, 52.2% of Yalla Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Yalla Group beats Rumble on 9 of the 13 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 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.
About Yalla Group
Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company’s platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.
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