Head to Head Review: Zenvia (NASDAQ:ZENV) and Applied Digital (NASDAQ:APLD)

Applied Digital (NASDAQ:APLD) and Zenvia (NASDAQ:ZENV) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Applied Digital and Zenvia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Digital	2	1	11	4	2.94
Zenvia	1	0	0	0	1.00

Applied Digital currently has a consensus price target of $66.50, suggesting a potential upside of 136.49%. Given Applied Digital’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Applied Digital is more favorable than Zenvia.

Profitability

This table compares Applied Digital and Zenvia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Applied Digital	-37.78%	-16.42%	-4.00%
Zenvia	-10.62%	-14.36%	-6.52%

Valuation and Earnings

This table compares Applied Digital and Zenvia”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Digital	$611.31 million	13.41	-$244.00 million	($0.89)	-31.60
Zenvia	$1.10 billion	0.02	-$28.67 million	($0.40)	-1.17

Zenvia has higher revenue and earnings than Applied Digital. Applied Digital is trading at a lower price-to-earnings ratio than Zenvia, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

65.7% of Applied Digital shares are owned by institutional investors. Comparatively, 49.2% of Zenvia shares are owned by institutional investors. 9.5% of Applied Digital shares are owned by insiders. Comparatively, 78.4% of Zenvia shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Applied Digital has a beta of 5.72, suggesting that its share price is 472% more volatile than the S&P 500. Comparatively, Zenvia has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.

Summary

Applied Digital beats Zenvia on 8 of the 15 factors compared between the two stocks.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

About Zenvia

Zenvia Inc. provides customer experience communications platform which empowers businesses to create unique journeys for their end-customers along their life cycle across range of B2C verticals. Zenvia Inc. is based in S?O PAULO.