Financial Review: Zendesk (NYSE:ZEN) & Carbonite (NYSE:CARB)
Zendesk (NYSE:ZEN) and Carbonite (NASDAQ:CARB) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.
Insider and Institutional Ownership
97.5% of Zendesk shares are held by institutional investors. 4.6% of Zendesk shares are held by company insiders. Comparatively, 8.0% of Carbonite shares 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.
This table compares Zendesk and Carbonite’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Zendesk has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Carbonite has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
Earnings and Valuation
This table compares Zendesk and Carbonite’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zendesk||$598.75 million||16.86||-$131.08 million||($0.95)||-96.98|
|Carbonite||$296.41 million||2.90||$7.56 million||$1.25||19.97|
Carbonite has lower revenue, but higher earnings than Zendesk. Zendesk is trading at a lower price-to-earnings ratio than Carbonite, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Zendesk and Carbonite, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Zendesk presently has a consensus target price of $91.83, suggesting a potential downside of 0.33%. Carbonite has a consensus target price of $38.18, suggesting a potential upside of 52.97%. Given Carbonite’s higher probable upside, analysts clearly believe Carbonite is more favorable than Zendesk.
Carbonite beats Zendesk on 8 of the 14 factors compared between the two stocks.
Zendesk, Inc., a software development company, provides SaaS products for organizations. Its flagship product is Zendesk Support, a system for tracking, prioritizing, and solving customer support tickets across various channels. The company also offers Zendesk Chat, a live chat software to connect with customers on Websites, applications, and mobile devices; Zendesk Talk, a cloud-based call center software; Zendesk Guide, a knowledge base that powers customer self-service and support agent productivity; Zendesk Sell, a sales force automation software to enhance productivity, processes, and pipeline visibility for sales teams; Zendesk Connect that manages customer communication across channels; and Zendesk Explore, which provides analytics for businesses to measure and enhance the customer experience. In addition, it provides Zendesk Sunshine, a customer relationship management platform; Zendesk Embeddables, which allow developers to embed support, chat, and guide experiences on the Web and within mobile applications; and Zendesk application platform interfaces and Apps. The company has operations in North America, Latin America, Europe, the Middle East, Africa, Australia, Asia, and South America. Zendesk, Inc. was founded in 2007 and is headquartered in San Francisco, California.
Carbonite, Inc., together with its subsidiaries, provides backup, disaster recovery, high availability, and workload migration technology solutions in the United States. Its solutions include Carbonite Safe, a cloud backup solution for individuals and businesses that protects customer data from accidental deletions, crashes, ransomware, viruses, and other common threats; and Carbonite Endpoint that protects the data, which resides on an organization's computers, laptops, tablets, and smartphones. The company's solutions also comprise Carbonite Server, an all-in-one server protection solution for physical, virtual, and legacy systems that deploys in an organization's onsite environment and store copies on a local target and direct to the secure Carbonite cloud; Carbonite Availability that keeps critical business systems available on Windows and Linux servers; and Carbonite Recover, a solution that securely replicates critical systems from an organization's primary environment to the cloud. In addition, it offers Carbonite Migrate, which migrates physical, virtual, and cloud workloads over any distance with minimal risk and near-zero downtime; and Carbonite Email Archiving that provides MailStore offerings designed to meet the specific email archiving needs of customers in terms of performance, stability, functionality, and simplicity. The company provides its solutions through distributors, value-added resellers, managed service providers, and global systems integrators. Carbonite, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.
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