Zoom Video Communications (ZM) and Its Rivals Critical Review
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 compare to its peers? We will compare Zoom Video Communications to related companies based on the strength of its analyst recommendations, dividends, valuation, risk, profitability, earnings and institutional ownership.
This table compares Zoom Video Communications and its peers’ 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%|
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 insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Zoom Video Communications and its peers revenue, earnings per share (EPS) 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|
Zoom Video Communications’ peers have higher revenue and earnings than Zoom Video Communications. Zoom Video Communications is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of current ratings and recommmendations for Zoom Video Communications and its peers, as provided 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 currently has a consensus price target of $98.78, suggesting 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’ peers stronger consensus rating and higher probable upside, analysts plainly believe Zoom Video Communications has less favorable growth aspects than its peers.
Zoom Video Communications peers beat Zoom Video Communications on 8 of the 12 factors compared.
Zoom Video Communications Company Profile
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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