Analyzing hopTo (OTCMKTS:HPTO) & Zoom Communications (NASDAQ:ZM)

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

Insider and Institutional Ownership

66.5% of Zoom Communications shares are owned by institutional investors. 46.0% of hopTo shares are owned by insiders. Comparatively, 10.8% of Zoom Communications 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
hopTo	N/A	N/A	N/A
Zoom Communications	41.99%	11.87%	9.69%

Analyst Ratings

This is a summary of current recommendations and price targets for hopTo and Zoom Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
hopTo	0	0	0	0	0.00
Zoom Communications	0	12	15	0	2.56

Zoom Communications has a consensus target price of $109.33, suggesting a potential upside of 12.91%. Given Zoom Communications’ stronger consensus rating and higher possible upside, analysts clearly believe Zoom Communications is more favorable than hopTo.

Risk & Volatility

hopTo has a beta of 3.37, indicating that its share price is 237% more volatile than the S&P 500. Comparatively, Zoom Communications has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares hopTo and Zoom Communications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
hopTo	N/A	N/A	N/A	N/A	N/A
Zoom Communications	$4.87 billion	5.83	$1.90 billion	$6.81	14.22

Zoom Communications has higher revenue and earnings than hopTo.

Summary

Zoom Communications beats hopTo on 8 of the 10 factors compared between the two stocks.

About hopTo

hopTo Inc., together with its subsidiaries, develops and sells application publishing software in the United States, Brazil, Japan, Germany, the Netherlands, and internationally. The company's application publishing software includes application virtualization and cloud computing software for a range of computer operating systems, including Windows, UNIX, and various Linux-based variants. It provides its application publishing software solutions under the GO-Global brand name. The company offers GO-Global, an application access solution that provides cross-platform remote access and Web-enabled access to existing software applications, as well as the deployment of secure and private cloud environments for use and/or resale by independent software vendors, corporate enterprises, governmental and educational institutions, and others. Its GO-Global software products comprise GO-Global for Windows that allows access to Windows-based applications from remote locations and Internet connections; GO-Global for UNIX, which allows access to UNIX and Linux-based applications from remote locations, and Internet and connections; and GO-Global Client that allows remote application access from various local, remote, and mobile platforms, including Windows, Linux, UNIX, Apple OS X and iOS, and Google Android. The company sells its products through resellers, such as original equipment manufacturers, system integrators, value-added resellers, and distributors. It serves small to medium-sized companies, departments within large corporations, governmental and educational institutions, and independent software vendors. The company was formerly known as GraphOn Corporation and changed its name to hopTo Inc. in September 2013. hopTo Inc. was incorporated in 1996 and is headquartered in Concord, New Hampshire.

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.