Contrasting Zoom Video Communications (NASDAQ:ZM) & Weibo (NASDAQ:WB)

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

Earnings & Valuation

This table compares Weibo and Zoom Video Communications’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weibo	$1.74 billion	1.06	$342.60 million	$1.19	6.61
Zoom Video Communications	$4.56 billion	3.86	$637.46 million	$2.68	21.27

Zoom Video Communications has higher revenue and earnings than Weibo. Weibo 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 Weibo and Zoom Video Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weibo	16.74%	10.92%	5.07%
Zoom Video Communications	18.37%	10.55%	8.43%

Institutional and Insider Ownership

68.8% of Weibo shares are held by institutional investors. Comparatively, 66.5% of Zoom Video Communications shares are held by institutional investors. 41.3% of Weibo shares are held by company insiders. Comparatively, 10.8% of Zoom Video Communications shares are held 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.

Risk and Volatility

Weibo has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Zoom Video Communications has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Weibo and Zoom Video Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weibo	2	3	2	0	2.00
Zoom Video Communications	2	12	6	0	2.20

Weibo presently has a consensus price target of $11.65, indicating a potential upside of 48.22%. Zoom Video Communications has a consensus price target of $75.22, indicating a potential upside of 31.97%. Given Weibo’s higher possible upside, analysts clearly believe Weibo is more favorable than Zoom Video Communications.

Summary

Zoom Video Communications beats Weibo on 9 of the 14 factors compared between the two stocks.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover content in the People's Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user's trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product solutions to MCNs, unions, and e-commerce partners; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation operates as a subsidiary of Sina Corporation.

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 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.