Unisys (NYSE:UIS) & Zenvia (NASDAQ:ZENV) Critical Analysis

Zenvia (NASDAQ:ZENV) and Unisys (NYSE:UIS) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

49.2% of Zenvia shares are held by institutional investors. Comparatively, 86.9% of Unisys shares are held by institutional investors. 78.4% of Zenvia shares are held by company insiders. Comparatively, 11.6% of Unisys 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.

Volatility & Risk

Zenvia has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Unisys has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Zenvia and Unisys, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zenvia	1	0	0	0	1.00
Unisys	2	0	2	0	2.00

Unisys has a consensus target price of $5.00, indicating a potential upside of 92.31%. Given Unisys’ stronger consensus rating and higher probable upside, analysts plainly believe Unisys is more favorable than Zenvia.

Profitability

This table compares Zenvia and Unisys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zenvia	-10.62%	-14.36%	-6.52%
Unisys	-21.65%	-14.09%	2.41%

Earnings and Valuation

This table compares Zenvia and Unisys”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zenvia	$1.10 billion	0.02	-$28.67 million	($0.40)	-1.17
Unisys	$1.95 billion	0.10	-$339.80 million	($5.89)	-0.44

Zenvia has higher earnings, but lower revenue than Unisys. Zenvia is trading at a lower price-to-earnings ratio than Unisys, indicating that it is currently the more affordable of the two stocks.

Summary

Unisys beats Zenvia on 10 of the 14 factors compared between the two stocks.

About Zenvia

Zenvia Inc. provides customer experience communications platform which empowers businesses to create unique journeys for their end-customers along their life cycle across range of B2C verticals. Zenvia Inc. is based in S?O PAULO.

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.