Critical Analysis: Grindr (NYSE:GRND) & Zoom Video Communications (NASDAQ:ZM)

Grindr (NYSE:GRNDGet Free Report) and Zoom Video Communications (NASDAQ:ZMGet Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Volatility & Risk

Grindr has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, Zoom Video Communications has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Valuation and Earnings

This table compares Grindr and Zoom Video Communications”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grindr $344.64 million 12.96 -$55.77 million ($0.79) -27.15
Zoom Video Communications $4.67 billion 4.98 $637.46 million $3.21 23.73

Zoom Video Communications has higher revenue and earnings than Grindr. Grindr 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Grindr -16.27% -177.83% 9.57%
Zoom Video Communications 20.34% 10.98% 8.89%

Analyst Recommendations

This is a breakdown of current recommendations for Grindr and Zoom Video Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grindr 0 0 5 0 3.00
Zoom Video Communications 0 15 8 1 2.42

Grindr currently has a consensus price target of $20.75, suggesting a potential downside of 3.26%. Zoom Video Communications has a consensus price target of $85.90, suggesting a potential upside of 12.80%. Given Zoom Video Communications’ higher probable upside, analysts clearly believe Zoom Video Communications is more favorable than Grindr.

Institutional and Insider Ownership

7.2% of Grindr shares are held by institutional investors. Comparatively, 66.5% of Zoom Video Communications shares are held by institutional investors. 76.4% of Grindr shares are held by company insiders. Comparatively, 10.8% of Zoom Video Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Zoom Video Communications beats Grindr on 11 of the 15 factors compared between the two stocks.

About Grindr

(Get Free Report)

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 Zoom Video Communications

(Get Free Report)

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.

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