Investors are comparing two notable companies in the medical and technology sectors: Leafly Holdings, Inc. and ZoomInfo Technologies Inc.. Both companies present unique offerings, but a recent analysis reveals that ZoomInfo significantly outperforms Leafly in several critical financial metrics.
Evaluating Volatility and Risk
One aspect of the comparison is the risk associated with each stock. Leafly has a beta of 1.12, indicating that its stock price is approximately 12% more volatile than that of the S&P 500. In contrast, ZoomInfo has a beta of 1.02, suggesting its stock is only 2% more volatile than the broader market index. This difference may influence investor choices, particularly those who are risk-averse.
Financial Performance and Valuation
A closer look at the financials shows that ZoomInfo leads in both revenue and earnings. The company has consistently reported higher gross revenues and earnings per share (EPS) compared to Leafly. Although Leafly currently trades at a lower price-to-earnings (P/E) ratio, making it appear more affordable, the disparity in revenue generation poses a significant consideration for potential investors.
Analysts have set a consensus target price of $11.50 for ZoomInfo Technologies, suggesting a potential upside of 78.29%. This optimistic outlook, combined with a stronger consensus rating, indicates that analysts favor ZoomInfo over Leafly in the stock market.
Profitability and Institutional Ownership
Profitability metrics further highlight the differences between the two companies. An analysis of net margins, return on equity, and return on assets shows that ZoomInfo maintains a more robust financial profile. Institutional ownership also reflects confidence in these companies. While 15.6% of Leafly shares are held by institutional investors, a striking 95.5% of ZoomInfo shares are owned by such entities. This high level of institutional backing often signals a belief in long-term growth potential.
Additionally, insider ownership shows different levels of confidence. 6.9% of Leafly shares are owned by company insiders, compared to 9.0% for ZoomInfo. These figures suggest that insiders at ZoomInfo have a more substantial stake in the company’s future.
In summary, ZoomInfo Technologies surpasses Leafly in 12 out of 14 evaluated factors, positioning it more favorably among investors. As the market continues to evolve, potential investors should weigh these financial indicators carefully.
About Leafly Holdings, Inc.: Founded in 2010 and headquartered in Seattle, Washington, Leafly operates a platform that connects consumers with cannabis brands and licensed retailers. The company provides various services, including digital advertising and software tools tailored for cannabis retailers.
About ZoomInfo Technologies Inc.: Established in 2007 and based in Vancouver, Washington, ZoomInfo offers a cloud-based platform designed to assist sales and marketing teams by providing essential intelligence on organizations and professionals. Its services cater to a wide range of industries, including software, financial services, and real estate.
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