ZoomInfo Technologies (NASDAQ:ZI) & QuinStreet (NASDAQ:QNST) Head to Head Review

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

Volatility and Risk

QuinStreet has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for QuinStreet and ZoomInfo Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuinStreet	0	2	4	0	2.67
ZoomInfo Technologies	2	2	1	0	1.80

QuinStreet presently has a consensus price target of $22.00, suggesting a potential upside of 9.07%. ZoomInfo Technologies has a consensus price target of $5.50, suggesting a potential upside of 35.80%. Given ZoomInfo Technologies’ higher probable upside, analysts clearly believe ZoomInfo Technologies is more favorable than QuinStreet.

Valuation & Earnings

This table compares QuinStreet and ZoomInfo Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuinStreet	$1.29 billion	0.90	$81.24 million	$1.41	14.30
ZoomInfo Technologies	$1.21 billion	1.14	$107.30 million	$0.12	33.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuinStreet	6.28%	12.73%	6.33%
ZoomInfo Technologies	0.74%	12.05%	3.46%

Institutional & Insider Ownership

97.8% of QuinStreet shares are owned by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are owned by institutional investors. 5.0% of QuinStreet shares are owned by insiders. Comparatively, 9.0% of ZoomInfo Technologies shares are owned 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.

Summary

QuinStreet beats ZoomInfo Technologies on 8 of the 14 factors compared between the two stocks.

About QuinStreet

QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. The company offers online marketing services, such as qualified clicks, leads, calls, applications, and customers through its websites or third-party publishers. It serves financial and home services industries. The company was incorporated in 1999 and is headquartered in Foster City, 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.