Reviewing ZipRecruiter (NYSE:ZIP) and ZoomInfo Technologies (NASDAQ:ZI)

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

Analyst Recommendations

This is a breakdown of recent recommendations for ZipRecruiter and ZoomInfo Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZipRecruiter	1	3	0	0	1.75
ZoomInfo Technologies	2	2	1	0	1.80

ZipRecruiter currently has a consensus price target of $4.17, suggesting a potential downside of 15.81%. ZoomInfo Technologies has a consensus price target of $5.50, suggesting a potential upside of 46.28%. Given ZoomInfo Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe ZoomInfo Technologies is more favorable than ZipRecruiter.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZipRecruiter	6.20%	N/A	-3.73%
ZoomInfo Technologies	0.74%	12.05%	3.46%

Valuation & Earnings

This table compares ZipRecruiter and ZoomInfo Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZipRecruiter	$452.26 million	0.90	-$32.99 million	$0.35	14.14
ZoomInfo Technologies	$1.21 billion	1.06	$107.30 million	$0.12	31.33

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

Institutional and Insider Ownership

70.6% of ZipRecruiter shares are owned by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are owned by institutional investors. 19.9% of ZipRecruiter shares are owned by insiders. Comparatively, 9.0% of ZoomInfo Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

ZipRecruiter has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Summary

ZoomInfo Technologies beats ZipRecruiter on 10 of the 14 factors compared between the two stocks.

About ZipRecruiter

ZipRecruiter, Inc. operates an online employment marketplace that connects job seekers and employers. Its platform provides various solutions, such as job posting, online interviews, job alerts, match scores, and application updates. The company was incorporated in 2010 and is based 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.