Financial Analysis: MassRoots (OTCMKTS:MSRT) versus ZipRecruiter (NYSE:ZIP)

MassRoots (OTCMKTS:MSRT) and ZipRecruiter (NYSE:ZIP) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for MassRoots and ZipRecruiter, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MassRoots	0	0	0	0	0.00
ZipRecruiter	1	4	0	0	1.80

ZipRecruiter has a consensus price target of $4.00, suggesting a potential upside of 35.36%. Given ZipRecruiter’s stronger consensus rating and higher possible upside, analysts plainly believe ZipRecruiter is more favorable than MassRoots.

Profitability

This table compares MassRoots and ZipRecruiter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MassRoots	N/A	-139.45%	N/A
ZipRecruiter	-7.35%	N/A	-5.58%

Volatility and Risk

MassRoots has a beta of 2.45, suggesting that its share price is 145% more volatile than the S&P 500. Comparatively, ZipRecruiter has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Earnings and Valuation

This table compares MassRoots and ZipRecruiter”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MassRoots	$10,000.00	187,451.63	-$14.71 million	$0.01	375.00
ZipRecruiter	$448.95 million	0.56	-$32.99 million	($0.35)	-8.44

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

Institutional and Insider Ownership

22.1% of MassRoots shares are held by institutional investors. Comparatively, 70.6% of ZipRecruiter shares are held by institutional investors. 6.1% of MassRoots shares are held by company insiders. Comparatively, 17.4% of ZipRecruiter shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

MassRoots beats ZipRecruiter on 7 of the 13 factors compared between the two stocks.

About MassRoots

MassRoots, Inc. engages in the development and provision of social media network for the cannabis community. It offers WeedPass, a rewards program which enables consumers to earn tickets to movies, sporting events, and festivals by shopping at participating dispensaries. The company was founded by Isaac Dietrich, Stewart Fortier, Tyler Knight, and Hyler Fortier in April 2013 and is headquartered in Denver, CO.

About ZipRecruiter

ZipRecruiter, Inc. operates an online employment marketplace that connects job seekers and employers. Its platform provides various solutions, such as job posting, online interviews, job alerts, match scores, and application updates. The company was incorporated in 2010 and is based in Santa Monica, California.