Head to Head Review: Zoom Video Communications (NASDAQ:ZM) vs. Health Catalyst (NASDAQ:HCAT)

Zoom Video Communications (NASDAQ:ZM) and Health Catalyst (NASDAQ:HCAT) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Zoom Video Communications and Health Catalyst, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zoom Video Communications 2 11 13 0 2.42
Health Catalyst 0 0 9 1 3.10

Zoom Video Communications presently has a consensus target price of $435.00, indicating a potential upside of 19.30%. Health Catalyst has a consensus target price of $42.54, indicating a potential downside of 10.10%. Given Zoom Video Communications’ higher possible upside, research analysts clearly believe Zoom Video Communications is more favorable than Health Catalyst.

Risk and Volatility

Zoom Video Communications has a beta of -1.46, indicating that its share price is 246% less volatile than the S&P 500. Comparatively, Health Catalyst has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares Zoom Video Communications and Health Catalyst’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zoom Video Communications 17.10% 27.93% 14.44%
Health Catalyst -48.17% -25.57% -14.56%

Insider and Institutional Ownership

38.0% of Zoom Video Communications shares are held by institutional investors. Comparatively, 81.5% of Health Catalyst shares are held by institutional investors. 24.3% of Zoom Video Communications shares are held by insiders. Comparatively, 22.1% of Health Catalyst shares are held 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.

Valuation and Earnings

This table compares Zoom Video Communications and Health Catalyst’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zoom Video Communications $622.66 million 167.49 $25.31 million $0.09 4,051.44
Health Catalyst $154.94 million 12.98 -$60.10 million ($1.42) -33.32

Zoom Video Communications has higher revenue and earnings than Health Catalyst. Health Catalyst is trading at a lower price-to-earnings ratio than Zoom Video Communications, indicating that it is currently the more affordable of the two stocks.

Summary

Zoom Video Communications beats Health Catalyst on 11 of the 15 factors compared between the two stocks.

Zoom Video Communications Company Profile

Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company's product portfolio includes Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system that provides secure call routing, call queuing, call detail reports, call recording, call quality monitoring, voicemail, switch to video, and other services, as well as inbound and outbound calling services; and Zoom Chat enables sharing messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices for meeting and phone customers. It also offers Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; and Zoom Video Webinars enables users to conduct large-scale online events, such as town hall meetings, workshops, and marketing presentations. In addition, the company provides Zoom for Developers that allows developers to integrate its video, phone, chat, and content sharing into other applications, as well as manages Zoom accounts; and Zoom App Marketplace enhance developers to publish their apps. It serves education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals. Zoom Video Communications, Inc. has partnership with ServiceNow. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. Zoom Video Communications, Inc. was founded in 2011 and is headquartered in San Jose, California.

Health Catalyst Company Profile

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations. Its solutions include a cloud-based data platform, analytics software, and professional services. The company was founded in 2008 and is headquartered in Salt Lake City, Utah.

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