CCC Intelligent Solutions (NYSE:CCCS) and Zapata Computing (NASDAQ:ZPTA) Critical Review

Zapata Computing (NASDAQ:ZPTA) and CCC Intelligent Solutions (NYSE:CCCS) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Risk and Volatility

Zapata Computing has a beta of 24.45, suggesting that its share price is 2,345% more volatile than the S&P 500. Comparatively, CCC Intelligent Solutions has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Earnings and Valuation

This table compares Zapata Computing and CCC Intelligent Solutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zapata Computing	$5.68 million	0.88	-$860,000.00	($4.57)	-0.03
CCC Intelligent Solutions	$996.96 million	4.86	-$92.48 million	N/A	N/A

Zapata Computing has higher earnings, but lower revenue than CCC Intelligent Solutions.

Insider and Institutional Ownership

51.2% of Zapata Computing shares are held by institutional investors. Comparatively, 95.8% of CCC Intelligent Solutions shares are held by institutional investors. 1.0% of Zapata Computing shares are held by company insiders. Comparatively, 6.0% of CCC Intelligent Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Zapata Computing and CCC Intelligent Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zapata Computing	N/A	N/A	-60.05%
CCC Intelligent Solutions	5.02%	5.35%	3.23%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Zapata Computing and CCC Intelligent Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zapata Computing	0	0	0	0	0.00
CCC Intelligent Solutions	1	2	4	0	2.43

CCC Intelligent Solutions has a consensus price target of $11.38, suggesting a potential upside of 52.89%. Given CCC Intelligent Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe CCC Intelligent Solutions is more favorable than Zapata Computing.

Summary

CCC Intelligent Solutions beats Zapata Computing on 11 of the 13 factors compared between the two stocks.

About Zapata Computing

Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, Massachusetts.

About CCC Intelligent Solutions

CCC Intelligent Solutions Holdings Inc., operates as a software as a service company for the property and casualty insurance economy in the United States and China. The company's cloud-based software as a service platform connects trading partners, facilitates commerce, and supports mission-critical, artificial intelligence enabled digital workflow across the insurance economy, including insurers, repairers, automakers, parts suppliers, lenders and more. It offers CCC insurance solutions, including CCC workflow, CCC estimating, CCC total loss, CCC casualty, CCC subrogation, and CCC claim handling; CCC repair solutions, such as CCC network management, CCC repair workflow, and CCC repair quality; CCC other ecosystem solutions, which includes CCC parts solutions, CCC automotive manufacturer solutions, CCC diagnostics service provider solutions, and CCC payments; and CCC international solutions. The company was founded in 1980 and is headquartered in Chicago, Illinois.