Comparing NerdWallet (NASDAQ:NRDS) & ZoomInfo Technologies (NASDAQ:GTM)

ZoomInfo Technologies (NASDAQ:GTM) and NerdWallet (NASDAQ:NRDS) are both small-cap communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Institutional & Insider Ownership

95.5% of ZoomInfo Technologies shares are owned by institutional investors. Comparatively, 38.8% of NerdWallet shares are owned by institutional investors. 9.9% of ZoomInfo Technologies shares are owned by insiders. Comparatively, 52.7% of NerdWallet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

ZoomInfo Technologies has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Profitability

This table compares ZoomInfo Technologies and NerdWallet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	-46.26%	22.80%	4.40%
NerdWallet	6.06%	15.56%	12.25%

Analyst Ratings

This is a summary of recent recommendations for ZoomInfo Technologies and NerdWallet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	6	10	2	0	1.78
NerdWallet	1	4	3	0	2.25

ZoomInfo Technologies presently has a consensus target price of $5.32, suggesting a potential upside of 61.32%. NerdWallet has a consensus target price of $10.90, suggesting a potential upside of 49.11%. Given ZoomInfo Technologies’ higher probable upside, equities research analysts plainly believe ZoomInfo Technologies is more favorable than NerdWallet.

Valuation & Earnings

This table compares ZoomInfo Technologies and NerdWallet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.25 billion	0.77	$124.20 million	($1.97)	-1.68
NerdWallet	$836.60 million	0.56	$48.70 million	$0.78	9.37

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

Summary

NerdWallet beats ZoomInfo Technologies on 8 of the 14 factors compared between the two stocks.

About ZoomInfo Technologies

ZoomInfo Technologies provides a business-to-business go-to-market intelligence and software platform. Its services help companies identify and research potential customers, manage sales and marketing activities, and support recruiting and other business workflows. The platform combines business contact and company information with tools for sales engagement, marketing, operations, and buyer-intent insights. Customers use these products to find prospects, prioritize outreach, and coordinate interactions with businesses.

About NerdWallet

NerdWallet, Inc. is a personal finance company that operates a digital platform to help consumers make financial decisions. Its website and mobile app provide educational content, comparison tools and recommendations across products such as credit cards, banking, mortgages, personal loans, insurance and investing services. The company was founded in 2009 by Tim Chen and offers services primarily in the United States, as well as in Canada and the United Kingdom. NerdWallet also serves small and midsize businesses with financial information and product recommendations.