Reviewing Red Cat (NASDAQ:RCAT) & ZoomInfo Technologies (NASDAQ:ZI)

ZoomInfo Technologies (NASDAQ:ZI) and Red Cat (NASDAQ:RCAT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Profitability

This table compares ZoomInfo Technologies and Red Cat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	8.66%	11.25%	3.59%
Red Cat	-206.42%	-52.40%	-47.59%

Valuation & Earnings

This table compares ZoomInfo Technologies and Red Cat’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.24 billion	3.85	$107.30 million	$0.27	46.59
Red Cat	$9.91 million	8.99	-$27.09 million	($0.52)	-2.31

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

Institutional & Insider Ownership

95.5% of ZoomInfo Technologies shares are held by institutional investors. Comparatively, 38.0% of Red Cat shares are held by institutional investors. 8.2% of ZoomInfo Technologies shares are held by company insiders. Comparatively, 31.2% of Red Cat shares are held by company 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.

Analyst Recommendations

This is a summary of recent ratings for ZoomInfo Technologies and Red Cat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	3	8	11	0	2.36
Red Cat	0	0	0	0	N/A

ZoomInfo Technologies currently has a consensus target price of $19.10, indicating a potential upside of 52.88%. Given ZoomInfo Technologies’ higher possible upside, research analysts clearly believe ZoomInfo Technologies is more favorable than Red Cat.

Summary

ZoomInfo Technologies beats Red Cat on 10 of the 12 factors compared between the two stocks.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.

About Red Cat

Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.