Bright Mountain Media (BMTM) versus Zscaler (ZS) Head to Head Review

Bright Mountain Media (OTCMKTS:BMTM) and Zscaler (NASDAQ:ZS) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Bright Mountain Media and Zscaler’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bright Mountain Media N/A -264.39% -97.84%
Zscaler -11.06% -8.93% -4.94%

Earnings & Valuation

This table compares Bright Mountain Media and Zscaler’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bright Mountain Media $1.74 million 68.41 -$5.22 million N/A N/A
Zscaler $190.17 million 51.44 -$33.64 million ($0.31) -254.16

Bright Mountain Media has higher earnings, but lower revenue than Zscaler.

Volatility and Risk

Bright Mountain Media has a beta of -0.5, meaning that its stock price is 150% less volatile than the S&P 500. Comparatively, Zscaler has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Bright Mountain Media and Zscaler, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bright Mountain Media 0 0 0 0 N/A
Zscaler 1 6 4 1 2.42

Zscaler has a consensus target price of $58.33, suggesting a potential downside of 25.96%. Given Zscaler’s higher probable upside, analysts plainly believe Zscaler is more favorable than Bright Mountain Media.

Institutional and Insider Ownership

30.5% of Zscaler shares are held by institutional investors. 61.6% of Bright Mountain Media shares are held by insiders. Comparatively, 27.4% of Zscaler shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Zscaler beats Bright Mountain Media on 8 of the 12 factors compared between the two stocks.

About Bright Mountain Media

Bright Mountain Media, Inc., a digital media holding company, owns and manages Websites in the United States. It operates through two segments, Product Sales and Advertising. The company operates Websites, which provides information, news, and entertainment to military, law enforcement, first responders, and other public safety employees. It also sells various products, including watches, clocks, apparels, and accessories through its Websites, e-commerce distributor portals, and retail locations. In addition, it owns Daily Engage Media, an advertisement network that offers video, display, mobile, and native advertisements, as well as provides focused promotion for advertisers of products and services. The company was formerly known as Bright Mountain Acquisition Corporation and changed its name to Bright Mountain Media, Inc. in December 2015. Bright Mountain Media, Inc. was founded in 2010 and is based in Boca Raton, Florida.

About Zscaler

Zscaler, Inc. operates as a cloud security company worldwide. The company's flagship services include Zscaler Internet Access solution that connect users to externally managed applications, including software-as-a-service applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to internally managed applications, either hosted internally in data centers, and private or public clouds. It serves customers in various industries, such as airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

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