Contrasting Zoom Video Communications (NASDAQ:ZM) and Internap (NASDAQ:INAP)

Internap (NASDAQ:INAP) and Zoom Video Communications (NASDAQ:ZM) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Internap and Zoom Video Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Internap -23.62% N/A -9.76%
Zoom Video Communications N/A N/A N/A

Institutional & Insider Ownership

65.4% of Internap shares are held by institutional investors. Comparatively, 9.1% of Zoom Video Communications shares are held by institutional investors. 6.4% of Internap shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Internap and Zoom Video Communications’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Internap $317.37 million 0.19 -$62.50 million ($3.01) -0.75
Zoom Video Communications N/A N/A N/A N/A N/A

Zoom Video Communications has lower revenue, but higher earnings than Internap.

Analyst Ratings

This is a summary of recent ratings and price targets for Internap and Zoom Video Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internap 0 0 6 0 3.00
Zoom Video Communications 2 11 7 0 2.25

Internap presently has a consensus target price of $8.25, suggesting a potential upside of 266.67%. Zoom Video Communications has a consensus target price of $90.48, suggesting a potential upside of 6.92%. Given Internap’s stronger consensus rating and higher probable upside, research analysts clearly believe Internap is more favorable than Zoom Video Communications.

Summary

Internap beats Zoom Video Communications on 5 of the 8 factors compared between the two stocks.

About Internap

Internap Corp. engages in the provision of information technology infrastructure services. It operates through the following segments: INAP US and INAP INTL. The INAP US segment consists of U. S. Colocation, U. S. Cloud, and U. S. Network services based in the United States. The INAP INTL segment consists of these same services based in countries other than the United States, and Ubersmith. The company was founded in May 1996 and is headquartered in Reston, VA.

About Zoom Video Communications

Zoom Video Communications, Inc. provides a video-first communications platform that delivers changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video experiences and connects users across various devices and locations in a single meeting. It serves education, entertainment/media, enterprise infrastructure, finance, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. Zoom Video Communications, Inc. was founded in 2011 and is headquartered in San Jose, California.

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