Zoom Video Communications (NASDAQ:ZM – Get Rating) and DouYu International (NASDAQ:DOYU – Get Rating) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
This table compares Zoom Video Communications and DouYu International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Zoom Video Communications||33.54%||21.17%||15.52%|
This is a breakdown of recent ratings and recommmendations for Zoom Video Communications and DouYu International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zoom Video Communications||1||14||14||0||2.45|
Zoom Video Communications currently has a consensus target price of $188.29, indicating a potential upside of 95.36%. DouYu International has a consensus target price of $2.48, indicating a potential upside of 58.65%. Given Zoom Video Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Zoom Video Communications is more favorable than DouYu International.
Earnings & Valuation
This table compares Zoom Video Communications and DouYu International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Zoom Video Communications||$4.10 billion||7.03||$1.38 billion||$4.49||21.47|
|DouYu International||$1.44 billion||0.35||-$79.23 million||($0.24)||-6.50|
Zoom Video Communications has higher revenue and earnings than DouYu International. DouYu International 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.
Institutional & Insider Ownership
55.9% of Zoom Video Communications shares are owned by institutional investors. Comparatively, 19.5% of DouYu International shares are owned by institutional investors. 12.3% of Zoom Video Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Zoom Video Communications has a beta of -0.66, suggesting that its stock price is 166% less volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Zoom Video Communications beats DouYu International on 13 of the 14 factors compared between the two stocks.
About Zoom Video Communications (Get Rating)
Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers 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; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Hardware-as-a-Service allows users to access video communication technology from third party equipment; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom's video-based communications solutions, as well as integrate Zoom's technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.
About DouYu International (Get Rating)
DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors eSports teams and organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and allows viewers and streamers to edit and upload short video clips by themselves. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, China.
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