Yext (YEXT) & Zynga (ZNGA) Critical Analysis

Yext (YEXT) & Zynga (ZNGA) Critical Analysis

Yext (NYSE:YEXT) and Zynga (NASDAQ:ZNGA) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Profitability

This table compares Yext and Zynga’s net margins, return on equity and return on assets.

Volatility & Risk

Yext has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Zynga has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Insider and Institutional Ownership

51.2% of Yext shares are owned by institutional investors. Comparatively, 78.9% of Zynga shares are owned by institutional investors. 20.8% of Yext shares are owned by company insiders. Comparatively, 11.9% of Zynga shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Yext and Zynga, as reported by MarketBeat.

Yext presently has a consensus price target of $23.00, indicating a potential upside of 60.39%. Zynga has a consensus price target of $4.84, indicating a potential upside of 21.41%. Given Yext’s stronger consensus rating and higher probable upside, research analysts plainly believe Yext is more favorable than Zynga.

Valuation and Earnings

This table compares Yext and Zynga’s top-line revenue, earnings per share (EPS) and valuation.

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

Summary

Zynga beats Yext on 9 of the 14 factors compared between the two stocks.

Yext Company Profile

Yext, Inc. is an emerging growth company engages in software development. It offers a cloud-based digital knowledge platform which allows businesses manage their digital knowledge in the cloud such as financial information, resources and performance of these resources on a consolidated basis and sync it to other application such as Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri and Yelp. It offers the Yext Knowledge Engine package on subscription basis which has an access to Listings, Pages, Reviews and other features. The Listing feature provides customers with control over their digital presence, including their location and other related attributes published on the used third-party applications. The Pages feature allows customers to establish landing pages on their own websites and to manage digital content on those sites, including calls to action. The Reviews presence enables customers to encourage and facilitate reviews from end consumers. The company was founded by Howard Lerman, Brent Metz, and Brian Distelburger in 2006 and is headquartered in New York, NY.

Zynga Company Profile

Zynga Inc. develops, markets, and operates social games as live services in the United States and internationally. The company's games are played on mobile platforms, such as iOS and Android operating systems, as well as on social networking sites, including Facebook. It also provides advertising services comprising mobile and display ads, engagement ads and offers, and branded virtual goods and sponsorships to advertising agencies and brokers; and software licensing and maintenance services related to NaturalMotion technology, as well as licenses its own brands. The company was formerly known as Zynga Game Network Inc. and changed its name to Zynga Inc. in November 2010. Zynga Inc. was founded in 2007 and is headquartered in San Francisco, California.

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