ZoomInfo Technologies (NASDAQ:GTM – Get Free Report) and Alphabet (NASDAQ:GOOGL – Get Free Report) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
Risk and Volatility
ZoomInfo Technologies has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Alphabet has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for ZoomInfo Technologies and Alphabet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZoomInfo Technologies | 7 | 10 | 1 | 0 | 1.67 |
| Alphabet | 0 | 4 | 46 | 5 | 3.02 |
Insider & Institutional Ownership
95.5% of ZoomInfo Technologies shares are owned by institutional investors. Comparatively, 40.0% of Alphabet shares are owned by institutional investors. 9.9% of ZoomInfo Technologies shares are owned by company insiders. Comparatively, 11.6% of Alphabet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares ZoomInfo Technologies and Alphabet’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% |
| Alphabet | 54.77% | 51.32% | 35.42% |
Earnings & Valuation
This table compares ZoomInfo Technologies and Alphabet”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZoomInfo Technologies | $1.26 billion | 0.84 | $124.20 million | ($1.86) | -1.96 |
| Alphabet | $445.87 billion | 9.55 | $132.17 billion | $19.91 | 17.49 |
Alphabet has higher revenue and earnings than ZoomInfo Technologies. ZoomInfo Technologies is trading at a lower price-to-earnings ratio than Alphabet, indicating that it is currently the more affordable of the two stocks.
Summary
Alphabet beats ZoomInfo Technologies on 13 of the 15 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 Alphabet
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.
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