Critical Contrast: ZoomInfo Technologies (NASDAQ:ZI) vs. Snap (NYSE:SNAP)

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

Insider & Institutional Ownership

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

Risk and Volatility

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

Earnings and Valuation

This table compares Snap and ZoomInfo Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap	$5.93 billion	1.74	-$460.49 million	($0.18)	-33.92
ZoomInfo Technologies	$1.21 billion	1.07	$107.30 million	$0.12	31.67

ZoomInfo Technologies has lower revenue, but higher earnings 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.

Profitability

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

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Snap and ZoomInfo Technologies, as reported by MarketBeat.com.

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

Snap currently has a consensus target price of $7.68, suggesting a potential upside of 25.82%. ZoomInfo Technologies has a consensus target price of $5.19, suggesting a potential upside of 36.51%. Given ZoomInfo Technologies’ higher possible upside, analysts clearly believe ZoomInfo Technologies is more favorable than Snap.

Summary

ZoomInfo Technologies beats Snap on 8 of the 15 factors compared between the two stocks.

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.

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.