Reviewing ZipRecruiter (ZIP) and Its Competitors

ZipRecruiter (NYSE:ZIP) is one of 192 public companies in the “Interactive Media & Services” industry, but how does it compare to its peers? We will compare ZipRecruiter to related companies based on the strength of its institutional ownership, valuation, dividends, analyst recommendations, profitability, earnings and risk.

Analyst Ratings

This is a summary of current ratings and target prices for ZipRecruiter and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZipRecruiter	0	4	0	0	2.00
ZipRecruiter Competitors	1450	6038	11562	443	2.56

ZipRecruiter currently has a consensus target price of $4.33, suggesting a potential downside of 31.98%. As a group, “Interactive Media & Services” companies have a potential upside of 31.85%. Given ZipRecruiter’s peers stronger consensus rating and higher possible upside, analysts clearly believe ZipRecruiter has less favorable growth aspects than its peers.

Profitability

This table compares ZipRecruiter and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZipRecruiter	9.30%	N/A	-0.96%
ZipRecruiter Competitors	-158.05%	-17.17%	4.08%

Valuation & Earnings

This table compares ZipRecruiter and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ZipRecruiter	$448.95 million	-$32.99 million	18.20
ZipRecruiter Competitors	$13.72 billion	$3.48 billion	8.03

ZipRecruiter’s peers have higher revenue and earnings than ZipRecruiter. ZipRecruiter is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

70.6% of ZipRecruiter shares are owned by institutional investors. Comparatively, 41.1% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 19.9% of ZipRecruiter shares are owned by company insiders. Comparatively, 24.0% of shares of all “Interactive Media & Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

ZipRecruiter has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, ZipRecruiter’s peers have a beta of 1.88, indicating that their average share price is 88% more volatile than the S&P 500.

Summary

ZipRecruiter peers beat ZipRecruiter on 9 of the 13 factors compared.

ZipRecruiter Company Profile

ZipRecruiter, Inc. operates an online employment marketplace that connects businesses with job seekers. Its platform enables employers to create and distribute job postings across a broad network of online channels, while helping candidates search for available positions and apply for roles. The company uses technology and matching tools to recommend relevant candidates to employers and suitable job opportunities to job seekers. Its services are designed for businesses of various sizes, including small and midsize employers, as well as staffing firms and larger organizations.