ZipRecruiter (NYSE:ZIP) versus Angi (NASDAQ:ANGI) Financial Review

Angi (NASDAQ:ANGI) and ZipRecruiter (NYSE:ZIP) are both small-cap communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Angi and ZipRecruiter, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angi	1	7	2	0	2.10
ZipRecruiter	0	4	0	0	2.00

Angi currently has a consensus price target of $9.29, suggesting a potential upside of 99.26%. ZipRecruiter has a consensus price target of $4.17, suggesting a potential upside of 0.40%. Given Angi’s stronger consensus rating and higher probable upside, research analysts plainly believe Angi is more favorable than ZipRecruiter.

Earnings & Valuation

This table compares Angi and ZipRecruiter”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angi	$992.55 million	0.19	$43.83 million	($5.52)	-0.84
ZipRecruiter	$448.95 million	0.76	-$32.99 million	$0.35	11.86

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

Institutional and Insider Ownership

12.8% of Angi shares are owned by institutional investors. Comparatively, 70.6% of ZipRecruiter shares are owned by institutional investors. 3.3% of Angi shares are owned by company insiders. Comparatively, 19.9% of ZipRecruiter shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Angi and ZipRecruiter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angi	-22.35%	1.52%	0.84%
ZipRecruiter	6.20%	N/A	-3.73%

Risk and Volatility

Angi has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, ZipRecruiter has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Summary

Angi beats ZipRecruiter on 8 of the 14 factors compared between the two stocks.

About Angi

Angi Inc. connects home service professionals with consumers in the United States and internationally. The company operates through three segments: Ads and Leads, Services, and International. It provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, matches consumers with independently established home services professionals. The company's Ads and Leads segment connects consumers with service professionals for local services through nationwide network of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, mobile, and magazine advertising to certified service professionals, as well as services and tools, including quoting, invoicing, and payment services. This segment provides consumers access to online True Cost Guide, which provides project cost information for various project types, as well as a library of home services-related content. Its Services segment offers a pre-priced offering, pursuant to which consumers can request services through Angi and Handy branded platforms and pay for such services on the applicable platform directly; and provides professionals with access to a pool of consumers seeking service professionals and must validate their home services experience, as well as attest to holding the requisite license(s) and maintain an acceptable rating to remain on Services platforms. The company's International segment operates Travaux, MyBuilder, MyHammer, Werkspo, and Homestars home services marketplaces. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. operates as a subsidiary of IAC Inc.

About ZipRecruiter

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.