Comparing Zentek (NASDAQ:ZTEK) & N-able (NYSE:NABL)

Zentek (NASDAQ:ZTEK) and N-able (NYSE:NABL) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

0.8% of Zentek shares are owned by institutional investors. Comparatively, 96.4% of N-able shares are owned by institutional investors. 1.5% of N-able shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Zentek and N-able”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zentek	$1.22 million	55.61	-$7.22 million	($0.05)	-12.62
N-able	$466.15 million	2.30	$30.96 million	($0.03)	-191.67

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Zentek and N-able, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zentek	1	0	0	0	1.00
N-able	1	3	4	0	2.38

N-able has a consensus target price of $9.45, indicating a potential upside of 64.35%. Given N-able’s stronger consensus rating and higher probable upside, analysts plainly believe N-able is more favorable than Zentek.

Volatility & Risk

Zentek has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, N-able has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares Zentek and N-able’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zentek	-914.51%	-57.52%	-44.73%
N-able	-1.31%	4.17%	2.41%

Summary

N-able beats Zentek on 12 of the 14 factors compared between the two stocks.

About Zentek

Zentek Ltd., together with its subsidiaries, engages in the research and development of graphene and related nanomaterials in Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compounds. It is also developing graphene oxide synthesis and graphene synthesis. In addition, the company owns 100% interest in the Albany graphite project located in Northern Ontario, Canada. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Guelph, Canada.

About N-able

N-able, Inc. provides cloud-based software solutions for managed service providers in the United States, the United Kingdom, and internationally. The company's solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides software platform designed to be an integrated, enterprise-grade solution that serves as an operating system for its MSP partners and scales as their businesses grow. In addition, the company offers remote monitoring and management solutions provide MSP partners with visibility and insights into the availability and performance of their customers' networks, infrastructure, devices and applications through a centralized dashboard; data protection as-a-service solutions, such as backup and disaster recovery for servers, virtual machines, workstations, files, data, and key cloud-based applications, as well as multi-tenant platform and secure remote delivery architecture. Further, it offers security services through patch management, endpoint security, managed detection and response, web protection, e-mail security, and archiving and vulnerability assessment solutions. Additionally, the company engages in professional services automation, automation and scripting management, password management policies and reporting, and analytics. N-able, Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.