Zoom Communications (NASDAQ:ZM) & Verra Mobility (NASDAQ:VRRM) Head to Head Analysis

Verra Mobility (NASDAQ:VRRM) and Zoom Communications (NASDAQ:ZM) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Verra Mobility and Zoom Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verra Mobility	0	3	2	0	2.40
Zoom Communications	1	12	14	0	2.48

Verra Mobility presently has a consensus target price of $24.75, suggesting a potential upside of 50.27%. Zoom Communications has a consensus target price of $95.32, suggesting a potential upside of 22.99%. Given Verra Mobility’s higher probable upside, research analysts plainly believe Verra Mobility is more favorable than Zoom Communications.

Insider & Institutional Ownership

66.5% of Zoom Communications shares are owned by institutional investors. 1.1% of Verra Mobility shares are owned by company insiders. Comparatively, 11.5% of Zoom Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Verra Mobility has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Zoom Communications has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Profitability

This table compares Verra Mobility and Zoom Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verra Mobility	13.95%	57.45%	11.45%
Zoom Communications	39.03%	11.88%	9.68%

Valuation and Earnings

This table compares Verra Mobility and Zoom Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verra Mobility	$979.08 million	2.68	$136.63 million	$0.85	19.38
Zoom Communications	$4.87 billion	4.71	$1.90 billion	$6.20	12.50

Zoom Communications has higher revenue and earnings than Verra Mobility. Zoom Communications is trading at a lower price-to-earnings ratio than Verra Mobility, indicating that it is currently the more affordable of the two stocks.

Summary

Zoom Communications beats Verra Mobility on 11 of the 14 factors compared between the two stocks.

About Verra Mobility

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Australia, Canada, and Europe. It operates through three segments: Commercial Services, Government Solutions, and Parking Solutions. The Commercial Services segment provides automated toll and violations management, and title and registration services to rental car companies, fleet management companies, and other large fleet owners. The Government Solutions segment offers automated safety solutions to national, state, and local government agencies, including services and technologies that enable photo enforcement through road safety cameras to detect and process traffic violations for red-light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Parking Solutions segment provides an integrated suite of parking software and hardware solutions to universities, municipalities, parking operators, healthcare facilities, and transportation hubs. Verra Mobility Corporation was incorporated in 2016 and is headquartered in Mesa, Arizona.

About Zoom Communications

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom’s video-based communications solutions, as well as integrate Zoom’s technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.