Zeta Global (NYSE:ZETA – Get Free Report) and Shopify (NYSE:SHOP – Get Free Report) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.
Valuation & Earnings
This table compares Zeta Global and Shopify”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zeta Global | $822.09 million | 8.43 | -$187.48 million | ($1.06) | -29.87 |
| Shopify | $7.06 billion | 15.19 | $132.00 million | $0.98 | 84.94 |
Shopify has higher revenue and earnings than Zeta Global. Zeta Global is trading at a lower price-to-earnings ratio than Shopify, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Institutional and Insider Ownership
75.8% of Zeta Global shares are held by institutional investors. Comparatively, 69.3% of Shopify shares are held by institutional investors. 25.5% of Zeta Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Zeta Global and Shopify, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zeta Global | 0 | 1 | 12 | 1 | 3.00 |
| Shopify | 1 | 15 | 24 | 1 | 2.61 |
Zeta Global presently has a consensus price target of $35.00, suggesting a potential upside of 10.55%. Shopify has a consensus price target of $78.97, suggesting a potential downside of 5.12%. Given Zeta Global’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Zeta Global is more favorable than Shopify.
Profitability
This table compares Zeta Global and Shopify’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zeta Global | -17.76% | -79.03% | -26.59% |
| Shopify | 16.40% | 10.88% | 8.71% |
Summary
Shopify beats Zeta Global on 10 of the 14 factors compared between the two stocks.
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.
About Shopify
Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping, and securing working capital. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.
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