ZoomInfo Technologies (NASDAQ:GTM) vs. NerdWallet (NASDAQ:NRDS) Head-To-Head Comparison

ZoomInfo Technologies (NASDAQ:GTM) and NerdWallet (NASDAQ:NRDS) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Earnings & Valuation

This table compares ZoomInfo Technologies and NerdWallet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.25 billion	0.82	$124.20 million	($1.97)	-1.78
NerdWallet	$836.60 million	0.60	$48.70 million	$0.89	8.87

ZoomInfo Technologies has higher revenue and earnings than NerdWallet. ZoomInfo Technologies is trading at a lower price-to-earnings ratio than NerdWallet, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

95.5% of ZoomInfo Technologies shares are owned by institutional investors. Comparatively, 38.8% of NerdWallet shares are owned by institutional investors. 9.9% of ZoomInfo Technologies shares are owned by company insiders. Comparatively, 52.7% of NerdWallet shares are owned by company 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 ZoomInfo Technologies and NerdWallet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	-46.26%	22.80%	4.40%
NerdWallet	6.06%	15.51%	12.27%

Risk and Volatility

ZoomInfo Technologies has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ZoomInfo Technologies and NerdWallet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	6	10	2	0	1.78
NerdWallet	1	4	3	0	2.25

ZoomInfo Technologies currently has a consensus price target of $5.32, suggesting a potential upside of 52.10%. NerdWallet has a consensus price target of $11.40, suggesting a potential upside of 44.49%. Given ZoomInfo Technologies’ higher possible upside, equities analysts plainly believe ZoomInfo Technologies is more favorable than NerdWallet.

Summary

NerdWallet beats ZoomInfo Technologies on 8 of the 14 factors compared between the two stocks.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., through its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company’s cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry verticals, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. ZoomInfo Technologies Inc. was founded in 2007 and is headquartered in Vancouver, Washington.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.