Critical Review: Zeta Global (ZETA) versus Its Rivals

Zeta Global (NYSE:ZETA) is one of 953 public companies in the “Software” industry, but how does it contrast to its competitors? We will compare Zeta Global to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Profitability

This table compares Zeta Global and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zeta Global	-0.15%	5.32%	3.15%
Zeta Global Competitors	-612.40%	21.13%	-8.86%

Analyst Recommendations

This is a breakdown of recent ratings for Zeta Global and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zeta Global	1	2	12	0	2.73
Zeta Global Competitors	5754	21551	44933	1498	2.57

Zeta Global currently has a consensus price target of $37.25, indicating a potential upside of 8.14%. As a group, “Software” companies have a potential upside of 29.69%. Given Zeta Global’s competitors higher possible upside, analysts plainly believe Zeta Global has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Zeta Global and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zeta Global	$1.30 billion	-$31.51 million	-1,722.25
Zeta Global Competitors	$1.80 billion	$385.91 million	108.90

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

Volatility & Risk

Zeta Global has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Zeta Global’s competitors have a beta of 1.34, suggesting that their average share price is 34% more volatile than the S&P 500.

Institutional and Insider Ownership

87.7% of Zeta Global shares are held by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are held by institutional investors. 10.7% of Zeta Global shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Zeta Global competitors beat Zeta Global on 8 of the 13 factors compared.

Zeta Global Company Profile

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. The company’s Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as agile intelligence suite, which synthesizes Zeta’s data and data generated by its customers to uncover consumer insights that are translated into marketing programs; and CDP, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. Zeta Global Holdings Corp. was incorporated in 2007 and is headquartered in New York, New York.