Zoom Video Communications (NASDAQ:ZM) and Infinite Group (OTCMKTS:IMCI) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Insider and Institutional Ownership
38.0% of Zoom Video Communications shares are held by institutional investors. 24.3% of Zoom Video Communications shares are held by insiders. Comparatively, 39.4% of Infinite Group shares are held 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.
Profitability
This table compares Zoom Video Communications and Infinite Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Zoom Video Communications | 17.10% | 27.93% | 14.44% |
Infinite Group | -1.39% | N/A | -7.28% |
Valuation & Earnings
This table compares Zoom Video Communications and Infinite Group's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Zoom Video Communications | $622.66 million | 176.95 | $25.31 million | $0.09 | 4,280.33 |
Infinite Group | $7.09 million | 0.94 | $50,000.00 | N/A | N/A |
Zoom Video Communications has higher revenue and earnings than Infinite Group.
Analyst Recommendations
This is a summary of current ratings for Zoom Video Communications and Infinite Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Zoom Video Communications | 2 | 11 | 13 | 0 | 2.42 |
Infinite Group | 0 | 0 | 0 | 0 | N/A |
Zoom Video Communications currently has a consensus target price of $435.00, suggesting a potential upside of 12.92%. Given Zoom Video Communications' higher probable upside, research analysts clearly believe Zoom Video Communications is more favorable than Infinite Group.
Risk and Volatility
Zoom Video Communications has a beta of -1.46, meaning that its share price is 246% less volatile than the S&P 500. Comparatively, Infinite Group has a beta of 2.31, meaning that its share price is 131% more volatile than the S&P 500.
Summary
Zoom Video Communications beats Infinite Group on 9 of the 11 factors compared between the two stocks.