Critical Review: Temenos (OTCMKTS:TMNSF) & ZoomInfo Technologies (NASDAQ:ZI)

Temenos (OTCMKTS:TMNSF) and ZoomInfo Technologies (NASDAQ:ZI) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Temenos and ZoomInfo Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Temenos	0	0	0	0	0.00
ZoomInfo Technologies	2	7	3	0	2.08

ZoomInfo Technologies has a consensus price target of $11.18, indicating a potential upside of 7.11%. Given ZoomInfo Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe ZoomInfo Technologies is more favorable than Temenos.

Valuation & Earnings

This table compares Temenos and ZoomInfo Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Temenos	$1.00 billion	5.91	$134.68 million	N/A	N/A
ZoomInfo Technologies	$1.21 billion	2.94	$107.30 million	$0.12	87.00

Temenos has higher earnings, but lower revenue than ZoomInfo Technologies.

Profitability

This table compares Temenos and ZoomInfo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Temenos	N/A	N/A	N/A
ZoomInfo Technologies	0.74%	12.05%	3.46%

Insider & Institutional Ownership

95.5% of ZoomInfo Technologies shares are owned by institutional investors. 9.0% of ZoomInfo Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Temenos has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Summary

ZoomInfo Technologies beats Temenos on 9 of the 12 factors compared between the two stocks.

About Temenos

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.