Zapata Computing (ZPTA) & Its Peers Critical Analysis

Institutional and Insider Ownership

51.2% of Zapata Computing shares are owned by institutional investors. Comparatively, 57.7% of shares of all “Prepackaged software” companies are owned by institutional investors. 1.0% of Zapata Computing shares are owned by company insiders. Comparatively, 19.8% of shares of all “Prepackaged software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Zapata Computing and its peers’ 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%
Zapata Computing Competitors	-43.03%	-34.74%	-5.53%

Valuation & Earnings

This table compares Zapata Computing and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zapata Computing	$5.68 million	-$860,000.00	-0.03
Zapata Computing Competitors	$804.45 million	$13.44 million	1.02

Zapata Computing’s peers have higher revenue and earnings than Zapata Computing. Zapata Computing is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Zapata Computing has a beta of 24.45, indicating that its stock price is 2,345% more volatile than the S&P 500. Comparatively, Zapata Computing’s peers have a beta of 1.45, indicating that their average stock price is 45% more volatile than the S&P 500.

Summary

Zapata Computing peers beat Zapata Computing on 6 of the 9 factors compared.

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.