Comparing ZoomInfo Technologies (NASDAQ:ZI) & Snap (NYSE:SNAP)

ZoomInfo Technologies (NASDAQ:ZI) and Snap (NYSE:SNAP) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

95.5% of ZoomInfo Technologies shares are owned by institutional investors. Comparatively, 47.5% of Snap shares are owned by institutional investors. 9.0% of ZoomInfo Technologies shares are owned by insiders. Comparatively, 22.7% of Snap shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for ZoomInfo Technologies and Snap, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	2	2	1	0	1.80
Snap	2	23	10	1	2.28

ZoomInfo Technologies presently has a consensus price target of $5.19, indicating a potential upside of 19.25%. Snap has a consensus price target of $7.68, indicating a potential upside of 21.27%. Given Snap’s stronger consensus rating and higher possible upside, analysts clearly believe Snap is more favorable than ZoomInfo Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	0.74%	12.05%	3.46%
Snap	-4.90%	-14.61%	-4.12%

Volatility and Risk

ZoomInfo Technologies has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Snap has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares ZoomInfo Technologies and Snap”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.21 billion	1.23	$107.30 million	$0.12	36.25
Snap	$6.35 billion	1.69	-$460.49 million	($0.18)	-35.19

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

Summary

Snap beats ZoomInfo Technologies on 8 of the 15 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 Snap

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.