Alphabet (NASDAQ:GOOGL – Get Free Report) and ZoomInfo Technologies (NASDAQ:GTM – Get Free Report) are both communication services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.
Insider and Institutional Ownership
40.0% of Alphabet shares are held by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are held by institutional investors. 11.6% of Alphabet shares are held by insiders. Comparatively, 9.9% of ZoomInfo Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Alphabet and ZoomInfo Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alphabet | 54.77% | 51.32% | 35.42% |
| ZoomInfo Technologies | -43.01% | 20.16% | 4.33% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alphabet | $402.84 billion | 10.71 | $132.17 billion | $19.91 | 17.72 |
| ZoomInfo Technologies | $1.25 billion | 0.90 | $124.20 million | ($1.86) | -2.09 |
Alphabet has higher revenue and earnings than ZoomInfo Technologies. ZoomInfo Technologies is trading at a lower price-to-earnings ratio than Alphabet, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and price targets for Alphabet and ZoomInfo Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alphabet | 0 | 4 | 46 | 5 | 3.02 |
| ZoomInfo Technologies | 7 | 10 | 1 | 0 | 1.67 |
Alphabet presently has a consensus target price of $425.72, suggesting a potential upside of 20.70%. ZoomInfo Technologies has a consensus target price of $5.93, suggesting a potential upside of 52.78%. Given ZoomInfo Technologies’ higher possible upside, analysts plainly believe ZoomInfo Technologies is more favorable than Alphabet.
Risk & Volatility
Alphabet has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
Summary
Alphabet beats ZoomInfo Technologies on 13 of the 15 factors compared between the two stocks.
About Alphabet
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.
About ZoomInfo Technologies
ZoomInfo Technologies Inc., through its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company’s cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry verticals, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. ZoomInfo Technologies Inc. was founded in 2007 and is headquartered in Vancouver, Washington.
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