Pinterest (NYSE:PINS) and Zoom Video Communications (NASDAQ:ZM) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Earnings and Valuation
This table compares Pinterest and Zoom Video Communications' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Pinterest | $1.14 billion | 37.48 | $-1,361,370,000.00 | ($3.24) | -21.03 |
Zoom Video Communications | $622.66 million | 154.99 | $25.31 million | $0.09 | 3,749.22 |
Zoom Video Communications has lower revenue, but higher earnings than Pinterest. Pinterest is trading at a lower price-to-earnings ratio than Zoom Video Communications, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Pinterest and Zoom Video Communications' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Pinterest | -26.81% | -14.42% | -12.19% |
Zoom Video Communications | 17.10% | 27.93% | 14.44% |
Insider & Institutional Ownership
58.2% of Pinterest shares are owned by institutional investors. Comparatively, 38.0% of Zoom Video Communications shares are owned by institutional investors. 24.3% of Zoom Video Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
Pinterest has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Zoom Video Communications has a beta of -1.46, suggesting that its stock price is 246% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Pinterest and Zoom Video Communications, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Pinterest | 0 | 9 | 22 | 0 | 2.71 |
Zoom Video Communications | 2 | 10 | 14 | 0 | 2.46 |
Pinterest presently has a consensus target price of $75.85, suggesting a potential upside of 11.31%. Zoom Video Communications has a consensus target price of $436.9565, suggesting a potential upside of 29.50%. Given Zoom Video Communications' higher probable upside, analysts clearly believe Zoom Video Communications is more favorable than Pinterest.
Summary
Zoom Video Communications beats Pinterest on 9 of the 14 factors compared between the two stocks.