Cardlytics (NASDAQ:CDLX) vs. Vimeo (NASDAQ:VMEO) Critical Analysis

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardlytics	0	2	4	1	2.86
Vimeo	0	2	0	0	2.00

Cardlytics presently has a consensus price target of $12.67, indicating a potential upside of 54.28%. Vimeo has a consensus price target of $4.25, indicating a potential upside of 13.94%. Given Cardlytics’ stronger consensus rating and higher possible upside, research analysts clearly believe Cardlytics is more favorable than Vimeo.

Risk & Volatility

Cardlytics has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Vimeo has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cardlytics	-55.23%	-25.36%	-8.37%
Vimeo	6.88%	7.71%	4.69%

Earnings and Valuation

This table compares Cardlytics and Vimeo’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardlytics	$309.20 million	1.30	-$134.70 million	($4.42)	-1.86
Vimeo	$418.54 million	1.51	$22.03 million	$0.17	21.94

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

Institutional & Insider Ownership

68.1% of Cardlytics shares are owned by institutional investors. Comparatively, 85.0% of Vimeo shares are owned by institutional investors. 4.4% of Cardlytics shares are owned by company insiders. Comparatively, 6.3% of Vimeo shares are owned 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.

Summary

Vimeo beats Cardlytics on 11 of the 15 factors compared between the two stocks.

About Cardlytics

Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.

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.