Contrasting ZoomInfo Technologies (NASDAQ:ZI) & Shopify (NASDAQ:SHOP)

Shopify (NASDAQ:SHOP) and ZoomInfo Technologies (NASDAQ:ZI) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

69.3% of Shopify shares are owned by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are owned by institutional investors. 9.0% of ZoomInfo Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Shopify has a beta of 2.82, suggesting that its share price is 182% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shopify	16.65%	11.72%	9.73%
ZoomInfo Technologies	0.74%	12.05%	3.46%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	23	22	0	2.49
ZoomInfo Technologies	2	8	4	0	2.14

Shopify currently has a consensus target price of $168.69, indicating a potential downside of 0.57%. ZoomInfo Technologies has a consensus target price of $11.31, indicating a potential upside of 10.10%. Given ZoomInfo Technologies’ higher probable upside, analysts clearly believe ZoomInfo Technologies is more favorable than Shopify.

Earnings & Valuation

This table compares Shopify 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
Shopify	$8.88 billion	24.87	$2.02 billion	$1.35	125.68
ZoomInfo Technologies	$1.21 billion	2.89	$107.30 million	$0.12	85.58

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

Summary

Shopify beats ZoomInfo Technologies on 9 of the 14 factors compared between the two stocks.

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.

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.