Critical Contrast: Zoom Video Communications (NASDAQ:ZM) and GAN (NASDAQ:GAN)

Zoom Video Communications (NASDAQ:ZM) and GAN (NASDAQ:GAN) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Zoom Video Communications and GAN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zoom Video Communications	1	16	5	0	2.18
GAN	0	2	0	0	2.00

Zoom Video Communications currently has a consensus price target of $81.55, indicating a potential upside of 29.46%. GAN has a consensus price target of $2.50, indicating a potential upside of 168.82%. Given GAN’s higher possible upside, analysts plainly believe GAN is more favorable than Zoom Video Communications.

Valuation and Earnings

This table compares Zoom Video Communications and GAN’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zoom Video Communications	$4.39 billion	4.32	$103.71 million	$0.44	143.16
GAN	$137.95 million	0.30	-$197.50 million	($4.01)	-0.23

Zoom Video Communications has higher revenue and earnings than GAN. GAN 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zoom Video Communications	3.17%	3.51%	2.68%
GAN	-124.36%	-49.75%	-19.69%

Institutional and Insider Ownership

54.9% of Zoom Video Communications shares are owned by institutional investors. Comparatively, 13.4% of GAN shares are owned by institutional investors. 11.3% of Zoom Video Communications shares are owned by company insiders. Comparatively, 8.5% of GAN shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Zoom Video Communications has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500. Comparatively, GAN has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.

Summary

Zoom Video Communications beats GAN on 12 of the 14 factors compared between the two stocks.

About Zoom Video Communications

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 GAN

GAN Limited operates as a business-to-business (B2B) supplier of enterprise software-as-a-service solutions to online casino gaming and sports betting applications in the United States, Europe, Latin America, and internationally. The company operates in two segments, B2B and Business-to-Consumer (B2C). It offers and licenses GameSTACK, an internet gaming platform that provides turnkey technology solution for regulated real-money internet gambling, online sports betting, and simulated gaming. The company also offers online sports betting, online casino game, and peer-to-peer poker services through its coolbet.com website, as well as a range of development, marketing, and customer support services designed to fast-track deployments and provide ongoing operational support for its software systems. It serves regional operators and individual tribal casino operators. The company was incorporated in 1999 and is headquartered in Irvine, California.