Zapata Computing (NASDAQ:ZPTA) versus ZoomInfo Technologies (NASDAQ:ZI) Head-To-Head Contrast

Zapata Computing (NASDAQ:ZPTA) and ZoomInfo Technologies (NASDAQ:ZI) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Volatility and Risk

Zapata Computing has a beta of 24.45, indicating that its stock price is 2,345% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Zapata Computing and ZoomInfo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zapata Computing	N/A	N/A	-60.05%
ZoomInfo Technologies	0.74%	12.05%	3.46%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zapata Computing	$5.68 million	0.95	-$860,000.00	($4.57)	-0.03
ZoomInfo Technologies	$1.21 billion	2.98	$107.30 million	$0.12	88.13

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Zapata Computing and ZoomInfo Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zapata Computing	0	0	0	0	0.00
ZoomInfo Technologies	3	7	4	0	2.07

ZoomInfo Technologies has a consensus target price of $11.31, indicating a potential upside of 6.93%. Given ZoomInfo Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe ZoomInfo Technologies is more favorable than Zapata Computing.

Institutional and Insider Ownership

51.2% of Zapata Computing shares are owned by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are owned by institutional investors. 1.0% of Zapata Computing shares are owned by company insiders. Comparatively, 9.0% of ZoomInfo Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

ZoomInfo Technologies beats Zapata Computing on 13 of the 14 factors compared between the two stocks.

About Zapata Computing

Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, Massachusetts.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., together with 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, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.