Critical Comparison: Zoom Video Communications (NASDAQ:ZM) & AdTheorent (NASDAQ:ADTH)

AdTheorent (NASDAQ:ADTH) and Zoom Video Communications (NASDAQ:ZM) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for AdTheorent and Zoom Video Communications, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AdTheorent 0 0 5 0 3.00
Zoom Video Communications 1 14 13 0 2.43

AdTheorent presently has a consensus target price of $10.50, indicating a potential upside of 92.31%. Zoom Video Communications has a consensus target price of $306.94, indicating a potential upside of 92.17%. Given AdTheorent’s stronger consensus rating and higher probable upside, research analysts plainly believe AdTheorent is more favorable than Zoom Video Communications.

Institutional and Insider Ownership

48.8% of Zoom Video Communications shares are held by institutional investors. 12.3% of Zoom Video Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
AdTheorent N/A N/A N/A
Zoom Video Communications 29.28% 24.22% 17.50%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AdTheorent N/A N/A N/A N/A N/A
Zoom Video Communications $2.65 billion 17.95 $672.32 million $3.76 42.48

Zoom Video Communications has higher revenue and earnings than AdTheorent.

Summary

Zoom Video Communications beats AdTheorent on 7 of the 9 factors compared between the two stocks.

AdTheorent Company Profile

AdTheorent Holding Company LLC is a programmatic digital advertising company using advanced machine learning technology and privacy-forward solutions to deliver measurable value for advertisers and marketers. AdTheorent Holding Company LLC, formerly known as MCAP Acquisition Corporation, is based in CHICAGO.

Zoom Video Communications Company Profile

Zoom Video Communications, Inc. engages in the provision of video-first communications platform. The firm offers meetings, chat, rooms and workspaces, phone systems, video webinars, marketplace, and developer platform products. It serves the education, finance, government, and healthcare industries. Its platform helps people to connect through voice, chat, content sharing, and face-to-face video experiences. The company was founded by Eric S. Yuan in 2011 and is headquartered in San Jose, CA.

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