ZipRecruiter (NYSE:ZIP) & Grindr (NYSE:GRND) Critical Comparison

Grindr (NYSE:GRND) and ZipRecruiter (NYSE:ZIP) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Profitability

This table compares Grindr and ZipRecruiter’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grindr	18.75%	357.13%	20.08%
ZipRecruiter	6.20%	N/A	-3.73%

Analyst Ratings

This is a summary of current ratings and target prices for Grindr and ZipRecruiter, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grindr	0	1	6	0	2.86
ZipRecruiter	0	4	0	0	2.00

Grindr presently has a consensus price target of $20.00, suggesting a potential upside of 46.48%. ZipRecruiter has a consensus price target of $4.17, suggesting a potential downside of 10.49%. Given Grindr’s stronger consensus rating and higher possible upside, analysts plainly believe Grindr is more favorable than ZipRecruiter.

Valuation & Earnings

This table compares Grindr and ZipRecruiter”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grindr	$509.82 million	4.66	$94.75 million	$0.50	27.31
ZipRecruiter	$452.26 million	0.85	-$32.99 million	$0.35	13.30

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

Institutional and Insider Ownership

7.2% of Grindr shares are owned by institutional investors. Comparatively, 70.6% of ZipRecruiter shares are owned by institutional investors. 60.9% of Grindr shares are owned by insiders. Comparatively, 19.9% of ZipRecruiter shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Grindr has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, ZipRecruiter has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Summary

Grindr beats ZipRecruiter on 12 of the 14 factors compared between the two stocks.

About Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.

About ZipRecruiter

ZipRecruiter, Inc. operates an online employment marketplace that connects job seekers and employers. Its platform provides various solutions, such as job posting, online interviews, job alerts, match scores, and application updates. The company was incorporated in 2010 and is based in Santa Monica, California.