Financial Analysis: Zenvia (NASDAQ:ZENV) versus Unisys (NYSE:UIS)

Unisys (NYSE:UIS) and Zenvia (NASDAQ:ZENV) are both small-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Profitability

This table compares Unisys and Zenvia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unisys	-21.65%	-14.09%	2.41%
Zenvia	-10.62%	-14.36%	-6.52%

Earnings & Valuation

This table compares Unisys and Zenvia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unisys	$1.95 billion	0.09	-$339.80 million	($5.89)	-0.40
Zenvia	$1.10 billion	0.02	-$28.67 million	($0.40)	-1.17

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

Insider and Institutional Ownership

86.9% of Unisys shares are held by institutional investors. Comparatively, 49.2% of Zenvia shares are held by institutional investors. 11.6% of Unisys shares are held by insiders. Comparatively, 78.4% of Zenvia shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Unisys and Zenvia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unisys	2	0	2	0	2.00
Zenvia	1	0	0	0	1.00

Unisys presently has a consensus price target of $5.00, indicating a potential upside of 111.42%. Given Unisys’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Unisys is more favorable than Zenvia.

Volatility & Risk

Unisys has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Zenvia has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.

Summary

Unisys beats Zenvia on 10 of the 14 factors compared between the two stocks.

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.

About Zenvia

Zenvia Inc. provides customer experience communications platform which empowers businesses to create unique journeys for their end-customers along their life cycle across range of B2C verticals. Zenvia Inc. is based in S?O PAULO.