Zapata Computing (NASDAQ:ZPTA – Get Free Report) and Porch Group (NASDAQ:PRCH – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Profitability
This table compares Zapata Computing and Porch Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zapata Computing | N/A | N/A | -60.05% |
| Porch Group | -14.55% | N/A | -10.57% |
Valuation and Earnings
This table compares Zapata Computing and Porch Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zapata Computing | $5.68 million | 0.00 | -$860,000.00 | N/A | N/A |
| Porch Group | $427.15 million | 3.09 | -$133.93 million | ($0.14) | -77.57 |
Zapata Computing has higher earnings, but lower revenue than Porch Group.
Risk and Volatility
Zapata Computing has a beta of -4.27, meaning that its stock price is 527% less volatile than the S&P 500. Comparatively, Porch Group has a beta of 2.63, meaning that its stock price is 163% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Zapata Computing and Porch Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zapata Computing | 0 | 0 | 2 | 0 | 3.00 |
| Porch Group | 0 | 1 | 6 | 1 | 3.00 |
Zapata Computing currently has a consensus price target of $1.63, indicating a potential upside of 812,400.00%. Porch Group has a consensus price target of $8.89, indicating a potential downside of 18.11%. Given Zapata Computing’s higher possible upside, analysts clearly believe Zapata Computing is more favorable than Porch Group.
Insider and Institutional Ownership
51.2% of Zapata Computing shares are owned by institutional investors. Comparatively, 48.5% of Porch Group shares are owned by institutional investors. 1.0% of Zapata Computing shares are owned by company insiders. Comparatively, 23.3% of Porch Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Porch Group beats Zapata Computing on 7 of the 11 factors compared between the two stocks.
About Zapata Computing
Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, Massachusetts.
About Porch Group
Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.
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