Zendesk (NYSE: ZEN) and AVG Technologies NV (NYSE:AVG) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Zendesk and AVG Technologies NV, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zendesk 0 2 9 0 2.82
AVG Technologies NV 0 0 0 0 N/A

Zendesk currently has a consensus price target of $32.50, suggesting a potential upside of 23.62%. Given Zendesk’s higher possible upside, equities research analysts plainly believe Zendesk is more favorable than AVG Technologies NV.

Volatility & Risk

Zendesk has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, AVG Technologies NV has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Insider and Institutional Ownership

92.7% of Zendesk shares are owned by institutional investors. Comparatively, 80.5% of AVG Technologies NV shares are owned by institutional investors. 5.3% of Zendesk 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.

Profitability

This table compares Zendesk and AVG Technologies NV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zendesk -29.34% -32.10% -20.12%
AVG Technologies NV 6.62% 29.61% 4.38%

Valuation & Earnings

This table compares Zendesk and AVG Technologies NV’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Zendesk $363.62 million 7.27 -$86.63 million ($1.10) -23.90
AVG Technologies NV N/A N/A N/A $0.87 28.79

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

Summary

Zendesk beats AVG Technologies NV on 6 of the 10 factors compared between the two stocks.

Zendesk Company Profile

Zendesk, Inc. (Zendesk) is a software development company. The Zendesk family of products is built to work together to help organizations understand and manage customer relationships. All Zendesk products share a common interface and are being developed to support a shared services infrastructure and common customer data platform. Zendesk’s products are developed using agile software techniques, and are designed to incorporate and innovate on customer feedback obtained through beta and Early Access Programs (EAPs). Its family of products includes Zendesk Support, Zendesk Chat, Zendesk Talk, Zendesk Help Center, Zendesk Message, Zendesk Explore and Zendesk Connect. Zendesk’s developer platform allows organizations to extend the functionality of its family of products and customize the experience for their employees and customers. Key components of Zendesk’s developer platform include Zendesk Embeddables, Zendesk application program interfaces (APIs) and Zendesk Applications.

AVG Technologies NV Company Profile

AVG Technologies N.V. provides software and online services. The Company operates through two segments: Consumer and small and medium sized business (SMB). Its product portfolio includes AVG Anti-Virus FREE, AVG Anti-Virus, AVG Internet Security, AVG Protection FREE suite, AVG Protection PRO suite, AVG Performance suite, Gallery, AVG Cleaner for Mac, AVG Driver Updater, AVG Web TuneUp, Alarm Clock Xtreme FREE + Timer, AVG Cleaner-Xperia and HideMyPhone, among others. Its location labs mobile solutions include AT&T FamilyMap, AT&T Smart Limits, T-Mobile FamilyWhere, Verizon FamilyBase, Safely Go and Aqui Estoy. Its AVG CloudCare Products include AVG Remote IT, AVG Anti-Virus, AVG Content Filtering, AVG Cloud Backup and AVG Email Security. Its Norman solutions include Norman Antivirus, Norman Security Suite, Norman Security Suite PRO, Norman Endpoint Protection, Norman Email Protection, Norman Security Portal, Norman SecureMail and Norman SecureSurf.

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