Zeta Global (NYSE:ZETA) vs. SmartRent (NYSE:SMRT) Critical Review

SmartRent (NYSE:SMRT) and Zeta Global (NYSE:ZETA) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Volatility and Risk

SmartRent has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Zeta Global has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Insider & Institutional Ownership

59.4% of SmartRent shares are held by institutional investors. Comparatively, 87.7% of Zeta Global shares are held by institutional investors. 2.3% of SmartRent shares are held by company insiders. Comparatively, 10.7% of Zeta Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares SmartRent and Zeta Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartRent	-12.97%	-8.50%	-6.27%
Zeta Global	-0.15%	5.32%	3.15%

Analyst Ratings

This is a breakdown of recent ratings and target prices for SmartRent and Zeta Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartRent	1	2	0	0	1.67
Zeta Global	1	3	10	0	2.64

SmartRent currently has a consensus price target of $1.20, indicating a potential upside of 0.42%. Zeta Global has a consensus price target of $30.77, indicating a potential upside of 0.18%. Given SmartRent’s higher possible upside, analysts clearly believe SmartRent is more favorable than Zeta Global.

Valuation and Earnings

This table compares SmartRent and Zeta Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartRent	$152.33 million	1.50	-$60.56 million	($0.10)	-11.95
Zeta Global	$1.30 billion	5.91	-$31.51 million	($0.02)	-1,535.70

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

Summary

Zeta Global beats SmartRent on 11 of the 14 factors compared between the two stocks.

About SmartRent

SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.

About Zeta Global

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. The company’s Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as agile intelligence suite, which synthesizes Zeta’s data and data generated by its customers to uncover consumer insights that are translated into marketing programs; and CDP, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. Zeta Global Holdings Corp. was incorporated in 2007 and is headquartered in New York, New York.