ZoomInfo Technologies (NASDAQ:GTM – Get Free Report) and Phoenix New Media (NYSE:FENG – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.
Profitability
This table compares ZoomInfo Technologies and Phoenix New Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZoomInfo Technologies | -43.01% | 20.16% | 4.33% |
| Phoenix New Media | 3.62% | 2.78% | 1.87% |
Volatility & Risk
ZoomInfo Technologies has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Phoenix New Media has a beta of -0.2, meaning that its stock price is 120% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZoomInfo Technologies | 7 | 10 | 1 | 0 | 1.67 |
| Phoenix New Media | 1 | 0 | 0 | 0 | 1.00 |
ZoomInfo Technologies currently has a consensus price target of $5.93, suggesting a potential upside of 49.31%. Given ZoomInfo Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe ZoomInfo Technologies is more favorable than Phoenix New Media.
Institutional & Insider Ownership
95.5% of ZoomInfo Technologies shares are held by institutional investors. Comparatively, 6.3% of Phoenix New Media shares are held by institutional investors. 9.9% of ZoomInfo Technologies shares are held by company insiders. Comparatively, 10.9% of Phoenix New Media shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares ZoomInfo Technologies and Phoenix New Media”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZoomInfo Technologies | $1.25 billion | 0.92 | $124.20 million | ($1.86) | -2.13 |
| Phoenix New Media | $109.47 million | 0.17 | $50,000.00 | $0.36 | 4.19 |
ZoomInfo Technologies has higher revenue and earnings than Phoenix New Media. ZoomInfo Technologies is trading at a lower price-to-earnings ratio than Phoenix New Media, indicating that it is currently the more affordable of the two stocks.
Summary
ZoomInfo Technologies beats Phoenix New Media on 10 of the 14 factors compared between the two stocks.
About ZoomInfo Technologies
ZoomInfo Technologies Inc., through its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company’s cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry verticals, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. ZoomInfo Technologies Inc. was founded in 2007 and is headquartered in Vancouver, Washington.
About Phoenix New Media
Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.
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