Zoom Video Communications (NASDAQ:ZM – Get Free Report) and Similarweb (NYSE:SMWB – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Profitability
This table compares Zoom Video Communications and Similarweb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zoom Video Communications | 14.08% | 9.68% | 7.63% |
| Similarweb | -13.47% | -203.38% | -12.30% |
Analyst Recommendations
This is a breakdown of current recommendations for Zoom Video Communications and Similarweb, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zoom Video Communications | 2 | 10 | 6 | 0 | 2.22 |
| Similarweb | 0 | 0 | 6 | 0 | 3.00 |
Valuation and Earnings
This table compares Zoom Video Communications and Similarweb’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zoom Video Communications | $4.53 billion | 4.19 | $637.46 million | $2.04 | 30.21 |
| Similarweb | $218.02 million | 2.84 | -$29.37 million | ($0.37) | -21.31 |
Zoom Video Communications has higher revenue and earnings than Similarweb. Similarweb 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.
Risk and Volatility
Zoom Video Communications has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500. Comparatively, Similarweb has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
Institutional and Insider Ownership
66.5% of Zoom Video Communications shares are owned by institutional investors. Comparatively, 57.6% of Similarweb shares are owned by institutional investors. 11.3% of Zoom Video Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Zoom Video Communications beats Similarweb on 10 of the 13 factors compared between the two stocks.
About Zoom Video 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.
About Similarweb
Similarweb Ltd. provides cloud-based digital intelligence solutions in the United States, Europe, the Asia Pacific, the United Kingdom, Israel, and internationally. The company offers digital research intelligence solutions for its customers to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing intelligence solutions for its customers to understand their competitors' online acquisition strategies in each marketing channel, and optimize their own strategies. It also provides sales intelligence solutions for its customers to access relevant buying signals and digital insights of their customers to generate leads quickly; and shopper intelligence solutions for its customers to analyze a view of their customers' digital journeys, monitor consumer demand, increase brand visibility in the search process, and optimize category and product level conversion in the purchase process. In addition, the company offers investor intelligence solutions for its customers to access an end-to-end view of market, sector, and company performance to ideate and monitor investment opportunities; forecast market performance; and perform due diligence. Further, it provides data-as-a-service and advisory services. The company serves retail, consumer packaged goods, consumer finance, consultancies, marketing and advertising agencies, media and publishers, business-to-business software, payment processors, travel, and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Givatayim, Israel.
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