Head-To-Head Analysis: Ziff Davis (NASDAQ:ZD) and Cognyte Software (NASDAQ:CGNT)

Ziff Davis (NASDAQ:ZD) and Cognyte Software (NASDAQ:CGNT) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Ziff Davis and Cognyte Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ziff Davis	3.26%	12.17%	6.16%
Cognyte Software	-0.16%	0.74%	0.33%

Volatility and Risk

Ziff Davis has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Cognyte Software has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ziff Davis and Cognyte Software”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ziff Davis	$1.45 billion	1.14	$47.35 million	$1.13	39.88
Cognyte Software	$400.04 million	1.92	-$640,000.00	($0.01)	-1,053.00

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

Analyst Ratings

This is a breakdown of current recommendations for Ziff Davis and Cognyte Software, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ziff Davis	2	4	3	0	2.11
Cognyte Software	1	2	2	0	2.20

Ziff Davis presently has a consensus price target of $47.25, indicating a potential upside of 4.84%. Cognyte Software has a consensus price target of $13.50, indicating a potential upside of 28.21%. Given Cognyte Software’s stronger consensus rating and higher probable upside, analysts clearly believe Cognyte Software is more favorable than Ziff Davis.

Institutional and Insider Ownership

99.8% of Ziff Davis shares are held by institutional investors. Comparatively, 72.9% of Cognyte Software shares are held by institutional investors. 3.4% of Ziff Davis shares are held by company insiders. Comparatively, 62.7% of Cognyte Software shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Ziff Davis beats Cognyte Software on 9 of the 14 factors compared between the two stocks.

About Ziff Davis

Ziff Davis, Inc., together with its subsidiaries, operates as a digital media and internet company in the United States and internationally. The company offers PCMag, an online resource for laboratory-based product reviews, technology news, buying guides, and research papers; Mashable for publishing technology and culture content; Spiceworks Ziff Davis provides digital content of IT products and services; retailMeNot, a savings destination platform; Offers.com, a coupon and deals website; and event-based properties, including BlackFriday.com, TheBlackFriday.com, BestBlackFriday.com, and DealsofAmerica.com. It also offers gaming and entertainment content under the IGN Entertainment and Humble Bundle brands; and information on internet connectivity under the Ookla, Ekahau, Downdetector, and RootMetrics brands. The company also offers digital content and information services for health and wellness consumers under the Everyday Health, DailyOM, Lose It!, Diabetes Daily, Castle Connolly, and Migraine Again brands; pregnancy and parenting content under the BabyCenter, Emma's Diary, and What to Expect brands; and Medpage Today that delivers medical news. In addition, the company offers PRIME Education, a medical education program for healthcare professionals; and Health eCareers, a digital portal for healthcare professionals. Further, it provides endpoint and email security, security awareness training, secure backup and file sharing, and virtual private network solutions under the IPVanish, VIPRE, Livedrive, Inspired eLearning, and SugarSync brands; and email marketing and delivery solutions, search engine optimization tools, and voice and text communication services under the Campaigner, iContact, SMTP, Kickbox, MOZ Pro, MOZ Local, Stat Analytics, eVoice, and Line2 brands. The company was formerly known as j2 Global, Inc. and changed its name to Ziff Davis, Inc. in October 2021. Ziff Davis, Inc. was incorporated in 2014 and is headquartered in New York, New York.

About Cognyte Software

Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company offers network intelligence analytics, threat intelligence analytics, decision intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies. Cognyte Software Ltd. was incorporated in 2020 and is headquartered in Herzliya, Israel.