Financial Review: Intuit (NASDAQ:INTU) versus ZIM (OTCMKTS:ZIMCF)

ZIM (OTCMKTS:ZIMCF) and Intuit (NASDAQ:INTU) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Institutional and Insider Ownership

83.7% of Intuit shares are owned by institutional investors. 70.7% of ZIM shares are owned by company insiders. Comparatively, 2.5% of Intuit shares are owned 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.

Analyst Recommendations

This is a breakdown of current ratings for ZIM and Intuit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM	0	0	0	0	0.00
Intuit	0	7	23	1	2.81

Intuit has a consensus target price of $636.10, indicating a potential upside of 56.37%. Given Intuit’s stronger consensus rating and higher probable upside, analysts plainly believe Intuit is more favorable than ZIM.

Profitability

This table compares ZIM and Intuit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZIM	N/A	N/A	N/A
Intuit	21.57%	24.23%	13.44%

Volatility and Risk

ZIM has a beta of -0.25, meaning that its share price is 125% less volatile than the S&P 500. Comparatively, Intuit has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares ZIM and Intuit”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIM	N/A	N/A	N/A	N/A	N/A
Intuit	$18.83 billion	5.97	$3.87 billion	$15.44	26.35

Intuit has higher revenue and earnings than ZIM.

Summary

Intuit beats ZIM on 10 of the 11 factors compared between the two stocks.

About ZIM

ZIM Corporation provides software products and services for the database and mobile markets in the United States, Brazil, Canada, Singapore, and Austria. The company operates in two segments, Mobile and Enterprise Software. It develops and sells ZIM integrated development environment (IDE) software, an enterprise software for use in the design, development, and management of information databases and mission critical applications. The company’s ZIM IDE software provides an IDE for Microsoft Windows, UNIX, and Linux computer operating systems. Its products are used to develop database applications in various industries, including finance, insurance, marketing, human resource, information, and records management. The company also provides migration services and management products; and short message services. ZIM Corporation was founded in 1997 and is headquartered in Ottawa, Canada.

About Intuit

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The Small Business & Self-Employed segment provides QuickBooks services, that includes financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for small businesses; and Mailchimp services, such as e-commerce, marketing automation, and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; and QuickBooks Self-Employed solution; payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; and financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns. The Consumer segment provides TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.