HubSpot (NYSE:HUBS – Get Free Report) and Zeta Global (NASDAQ:ZETA – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Insider & Institutional Ownership
90.4% of HubSpot shares are held by institutional investors. Comparatively, 75.8% of Zeta Global shares are held by institutional investors. 4.9% of HubSpot shares are held by company insiders. Comparatively, 25.5% of Zeta Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
HubSpot has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Zeta Global has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HubSpot | $2.17 billion | 14.38 | -$176.29 million | ($2.65) | -231.17 |
| Zeta Global | $728.72 million | 5.45 | -$187.48 million | ($1.06) | -17.11 |
HubSpot has higher revenue and earnings than Zeta Global. HubSpot is trading at a lower price-to-earnings ratio than Zeta Global, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for HubSpot and Zeta Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HubSpot | 1 | 3 | 23 | 0 | 2.81 |
| Zeta Global | 0 | 0 | 11 | 1 | 3.08 |
HubSpot presently has a consensus price target of $640.04, suggesting a potential upside of 4.48%. Zeta Global has a consensus price target of $19.95, suggesting a potential upside of 9.98%. Given Zeta Global’s stronger consensus rating and higher possible upside, analysts clearly believe Zeta Global is more favorable than HubSpot.
Profitability
This table compares HubSpot and Zeta Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HubSpot | -5.78% | -4.94% | -2.11% |
| Zeta Global | -22.20% | -101.48% | -31.80% |
Summary
HubSpot beats Zeta Global on 9 of the 15 factors compared between the two stocks.
About HubSpot
HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.
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.
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