Financial Analysis: Zoom Video Communications (ZM) versus The Competition
Zoom Video Communications (NASDAQ: ZM) is one of 59 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it weigh in compared to its rivals? We will compare Zoom Video Communications to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, dividends and risk.
Earnings and Valuation
This table compares Zoom Video Communications and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Zoom Video Communications||$622.66 million||$21.75 million||1,534.56|
|Zoom Video Communications Competitors||$8.32 billion||$1.62 billion||43.79|
This table compares Zoom Video Communications and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Zoom Video Communications||3.73%||3.30%||2.23%|
|Zoom Video Communications Competitors||-4.23%||-54.08%||-3.57%|
This is a summary of current ratings for Zoom Video Communications and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zoom Video Communications||2||14||8||0||2.25|
|Zoom Video Communications Competitors||959||3233||6427||319||2.56|
Zoom Video Communications presently has a consensus price target of $98.78, indicating a potential downside of 28.48%. As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 125.67%. Given Zoom Video Communications’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Zoom Video Communications has less favorable growth aspects than its rivals.
Insider & Institutional Ownership
22.6% of Zoom Video Communications shares are held by institutional investors. Comparatively, 52.8% of shares of all “Computer programming, data processing, & other computer related” companies are held by institutional investors. 14.7% of shares of all “Computer programming, data processing, & other computer related” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Zoom Video Communications rivals beat Zoom Video Communications on 8 of the 12 factors compared.
About Zoom Video Communications
Zoom Video Communications, Inc. provides a video-first communications platform that changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video experiences and connects users across various devices and locations in a single meeting. It serves education, entertainment/media, enterprise infrastructure, finance, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. Zoom Video Communications, Inc. was founded in 2011 and is headquartered in San Jose, California.
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