Zoom Communications (NASDAQ:ZM) & Rekor Systems (NASDAQ:REKR) Critical Review

Zoom Communications (NASDAQ:ZM) and Rekor Systems (NASDAQ:REKR) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

66.5% of Zoom Communications shares are owned by institutional investors. Comparatively, 45.7% of Rekor Systems shares are owned by institutional investors. 8.8% of Zoom Communications shares are owned by insiders. Comparatively, 3.2% of Rekor Systems shares are owned 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.

Analyst Ratings

This is a summary of current ratings and target prices for Zoom Communications and Rekor Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoom Communications	0	11	16	0	2.59
Rekor Systems	1	0	0	0	1.00

Zoom Communications currently has a consensus price target of $114.48, suggesting a potential upside of 18.06%. Given Zoom Communications’ stronger consensus rating and higher possible upside, equities analysts plainly believe Zoom Communications is more favorable than Rekor Systems.

Profitability

This table compares Zoom Communications and Rekor Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zoom Communications	65.19%	10.86%	8.93%
Rekor Systems	-43.84%	-59.05%	-27.37%

Earnings and Valuation

This table compares Zoom Communications and Rekor Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zoom Communications	$4.87 billion	5.81	$1.90 billion	$10.80	8.98
Rekor Systems	$49.82 million	0.93	-$31.46 million	($0.16)	-2.11

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

Risk and Volatility

Zoom Communications has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Rekor Systems has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.

Summary

Zoom Communications beats Rekor Systems on 13 of the 14 factors compared between the two stocks.

About Zoom Communications

Zoom Communications provides cloud-based collaboration and communications software for businesses, organizations and individual users. Its products include Zoom Meetings for video conferencing, Zoom Team Chat, Zoom Phone, Zoom Rooms and tools for webinars and online events. The company also offers Zoom Contact Center and other services designed to support customer interactions and workplace collaboration. Founded in 2011 by Eric Yuan, Zoom became widely known for its video-conferencing service. The company, formerly known as Zoom Video Communications, adopted the name Zoom Communications in 2024 as it expanded its offerings beyond video meetings.

About Rekor Systems

Rekor Systems, Inc. (NASDAQ: REKR) is a technology company that develops artificial intelligence and machine-learning solutions for roadway intelligence, public safety, and transportation management. Its software analyzes data from cameras and other sources to help government agencies, law enforcement organizations, transportation departments, and commercial customers understand and manage vehicle movement. The company’s Rekor One platform is designed to combine roadway data from multiple sources and provide tools for vehicle identification, traffic analytics, incident detection, and operational decision-making.