Analyzing CI&T (NYSE:CINT) and zSpace (NASDAQ:ZSPC)

zSpace (NASDAQ:ZSPC) and CI&T (NYSE:CINT) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Insider and Institutional Ownership

92.5% of CI&T shares are held by institutional investors. 55.7% of zSpace shares are held by 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 Ratings

This is a breakdown of current ratings and recommmendations for zSpace and CI&T, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
zSpace	1	1	2	0	2.25
CI&T	0	2	5	0	2.71

zSpace currently has a consensus price target of $6.00, suggesting a potential upside of 2,172.73%. CI&T has a consensus price target of $6.75, suggesting a potential upside of 36.09%. Given zSpace’s higher probable upside, equities analysts clearly believe zSpace is more favorable than CI&T.

Profitability

This table compares zSpace and CI&T’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
zSpace	-68.88%	N/A	-177.47%
CI&T	7.83%	12.42%	6.74%

Volatility & Risk

zSpace has a beta of -0.55, suggesting that its share price is 155% less volatile than the S&P 500. Comparatively, CI&T has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Earnings & Valuation

This table compares zSpace and CI&T”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
zSpace	$38.10 million	0.23	-$20.82 million	($0.79)	-0.33
CI&T	$439.11 million	1.52	$29.49 million	$0.27	18.37

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

Summary

CI&T beats zSpace on 12 of the 14 factors compared between the two stocks.

About zSpace

zSpace Technologies, Inc. is a provider of commercial augmented reality and virtual reality technology principally in the education market. The Company offers differentiated hardware along with learning software modules for K-12 science, technology, engineering, game design and mathematics applications, as well as workforce-oriented career and technical education applications. zSpace Technologies Inc. is based in SAN JOSE, Calif.

About CI&T

CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno Guiçardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.