Reviewing ANSYS (NASDAQ:ANSS) and ZoomInfo Technologies (NASDAQ:ZI)

ANSYS (NASDAQ:ANSSGet Rating) and ZoomInfo Technologies (NASDAQ:ZIGet Rating) are both large-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Earnings and Valuation

This table compares ANSYS and ZoomInfo Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ANSYS $1.91 billion 12.58 $454.63 million $5.15 53.53
ZoomInfo Technologies $747.20 million 25.58 $116.80 million $0.28 169.29

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

Profitability

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

Net Margins Return on Equity Return on Assets
ANSYS 23.84% 11.87% 8.50%
ZoomInfo Technologies 15.63% 9.56% 2.93%

Volatility and Risk

ANSYS has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for ANSYS and ZoomInfo Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANSYS 2 7 2 0 2.00
ZoomInfo Technologies 0 0 17 0 3.00

ANSYS currently has a consensus price target of $319.09, suggesting a potential upside of 15.74%. ZoomInfo Technologies has a consensus price target of $76.78, suggesting a potential upside of 61.98%. Given ZoomInfo Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe ZoomInfo Technologies is more favorable than ANSYS.

Insider and Institutional Ownership

89.9% of ANSYS shares are owned by institutional investors. Comparatively, 90.2% of ZoomInfo Technologies shares are owned by institutional investors. 0.6% of ANSYS shares are owned by company insiders. Comparatively, 9.7% of ZoomInfo Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

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

About ANSYS (Get Rating)

ANSYS, Inc. develops and markets engineering simulation software and services worldwide. It offers ANSYS Workbench, a framework upon which its multiphysics engineering simulation technologies are built and enables engineers to simulate the interactions between structures, heat transfer, fluids, electronics, and optical elements in a unified engineering simulation environment; high-performance computing product suite; power analysis and optimization software suite that manages the power budget, power delivery integrity, and power-induced noise in an electronic design; and structural analysis product suite that provides simulation tools for product design and optimization. The company also provides electronics product suite that offers field simulation software for designing electronic and electromechanical products; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; fluids product suite that enables modeling of fluid flow and other related physical phenomena; Ansys Granta products to give access to material intelligence; photonic design and simulation tools; and optical sensor and closed-loop, and real-time simulation, as well as safety-certified embedded software solutions. In addition, the company provides Discovery product family for use in the simulation of product design; and academic product suite used in research and teaching settings, which allows students to become familiar with its simulation software. It serves engineers, designers, researchers, and students in the aerospace and defense, automotive transportation and mobility, construction, consumer products, energy, healthcare, high-tech, industrial equipment, materials and chemical processing, and sports industries. The company was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.

About ZoomInfo Technologies (Get Rating)

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.

Receive News & Ratings for ANSYS Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ANSYS and related companies with MarketBeat.com's FREE daily email newsletter.