Contrasting ZipRecruiter (NYSE:ZIP) and Grindr (NYSE:GRND)

Grindr (NYSE:GRND) and ZipRecruiter (NYSE:ZIP) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Institutional & Insider Ownership

7.2% of Grindr shares are owned by institutional investors. Comparatively, 70.6% of ZipRecruiter shares are owned by institutional investors. 60.9% of Grindr shares are owned by company insiders. Comparatively, 19.9% of ZipRecruiter shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Grindr has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, ZipRecruiter has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Grindr and ZipRecruiter, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grindr	0	1	6	0	2.86
ZipRecruiter	0	4	0	0	2.00

Grindr presently has a consensus target price of $20.00, suggesting a potential upside of 40.35%. ZipRecruiter has a consensus target price of $4.17, suggesting a potential downside of 9.91%. Given Grindr’s stronger consensus rating and higher probable upside, research analysts clearly believe Grindr is more favorable than ZipRecruiter.

Earnings and Valuation

This table compares Grindr and ZipRecruiter”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grindr	$439.90 million	5.63	$94.75 million	$0.50	28.50
ZipRecruiter	$448.95 million	0.85	-$32.99 million	$0.35	13.21

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

Profitability

This table compares Grindr and ZipRecruiter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grindr	18.75%	357.13%	20.08%
ZipRecruiter	6.20%	N/A	-3.73%

Summary

Grindr beats ZipRecruiter on 11 of the 14 factors compared between the two stocks.

About Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.

About ZipRecruiter

ZipRecruiter, Inc. operates an online employment marketplace that connects job seekers and employers. Its platform provides various solutions, such as job posting, online interviews, job alerts, match scores, and application updates. The company was incorporated in 2010 and is based in Santa Monica, California.