Comparing Zoom Communications (NASDAQ:ZM) & Waystar (NASDAQ:WAY)

Zoom Communications (NASDAQ:ZM) and Waystar (NASDAQ:WAY) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Valuation and Earnings

This table compares Zoom Communications and Waystar”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zoom Communications	$4.87 billion	5.57	$1.90 billion	$6.20	14.84
Waystar	$1.10 billion	4.43	$112.09 million	$0.61	41.67

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Zoom Communications and Waystar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoom Communications	1	13	14	0	2.46
Waystar	1	2	16	3	2.95

Zoom Communications currently has a consensus target price of $95.32, indicating a potential upside of 3.57%. Waystar has a consensus target price of $36.65, indicating a potential upside of 44.18%. Given Waystar’s stronger consensus rating and higher probable upside, analysts clearly believe Waystar is more favorable than Zoom Communications.

Risk & Volatility

Zoom Communications has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Waystar has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Profitability

This table compares Zoom Communications and Waystar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zoom Communications	39.03%	11.88%	9.68%
Waystar	10.20%	6.86%	4.63%

Insider & Institutional Ownership

66.5% of Zoom Communications shares are owned by institutional investors. 11.5% of Zoom Communications shares are owned by insiders. Comparatively, 4.1% of Waystar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Zoom Communications beats Waystar on 10 of the 15 factors compared between the two stocks.

About Zoom Communications

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom’s video-based communications solutions, as well as integrate Zoom’s technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.

About Waystar

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.