Critical Analysis: ZipRecruiter (ZIP) & Its Peers

ZipRecruiter (NYSE:ZIP) is one of 191 public companies in the “Interactive Media & Services” industry, but how does it contrast to its rivals? We will compare ZipRecruiter to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Analyst Ratings

This is a breakdown of current recommendations and price targets for ZipRecruiter and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZipRecruiter	1	4	0	0	1.80
ZipRecruiter Competitors	1359	5868	11288	421	2.57

ZipRecruiter presently has a consensus price target of $4.38, indicating a potential downside of 14.33%. As a group, “Interactive Media & Services” companies have a potential upside of 26.52%. Given ZipRecruiter’s rivals stronger consensus rating and higher probable upside, analysts plainly believe ZipRecruiter has less favorable growth aspects than its rivals.

Risk and Volatility

ZipRecruiter has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, ZipRecruiter’s rivals have a beta of 1.60, indicating that their average stock price is 60% more volatile than the S&P 500.

Institutional and Insider Ownership

70.6% of ZipRecruiter shares are owned by institutional investors. Comparatively, 40.9% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 19.9% of ZipRecruiter shares are owned by company insiders. Comparatively, 23.7% of shares of all “Interactive Media & Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares ZipRecruiter and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ZipRecruiter	$448.95 million	-$32.99 million	-18.24
ZipRecruiter Competitors	$13.62 billion	$3.51 billion	7.45

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

Profitability

This table compares ZipRecruiter and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZipRecruiter	6.20%	N/A	-3.73%
ZipRecruiter Competitors	-356.59%	-36.43%	4.74%

Summary

ZipRecruiter rivals beat ZipRecruiter on 9 of the 13 factors compared.

ZipRecruiter Company Profile

ZipRecruiter, Inc. operates an online employment marketplace that connects job seekers and employers. Its platform provides various solutions, such as job posting, online interviews, job alerts, match scores, and application updates. The company was incorporated in 2010 and is based in Santa Monica, California.