Critical Survey: Zapata Computing (NASDAQ:ZPTA) and SeaChange International (NASDAQ:SEAC)

Profitability

This table compares SeaChange International and Zapata Computing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SeaChange International	N/A	N/A	N/A
Zapata Computing	N/A	N/A	-60.05%

Valuation and Earnings

This table compares SeaChange International and Zapata Computing”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SeaChange International	$32.76 million	0.25	-$11.40 million	$0.38	9.21
Zapata Computing	$5.68 million	0.82	-$860,000.00	($4.57)	-0.03

Zapata Computing has lower revenue, but higher earnings than SeaChange International. Zapata Computing is trading at a lower price-to-earnings ratio than SeaChange International, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

51.2% of Zapata Computing shares are held by institutional investors. 3.9% of SeaChange International shares are held by insiders. Comparatively, 1.0% of Zapata Computing shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

SeaChange International has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Zapata Computing has a beta of 24.64, suggesting that its stock price is 2,364% more volatile than the S&P 500.

Summary

SeaChange International beats Zapata Computing on 5 of the 9 factors compared between the two stocks.

About SeaChange International

SeaChange International, Inc. provides video delivery, advertising, streaming platforms, and emerging Free Ad-Supported Streaming TV (FAST) products and services that facilitate the aggregation, licensing, management and distribution of video and advertising content worldwide. It offers Operator TV Platform solutions including customer's current network with OTT video management solutions in a single deployment, digital video broadcasting – cable / quadrature amplitude modulation networks with OTT streaming, and immersive multiscreen experience and on demand services, as well as pre-integrated solutions, such as multi-content delivery networks including Broadpeak, Edgeware and HBO, multidigital rights management, and seamless integration with existing network components. The company also provides StreamVid, a cloud-based OTT video platform for operators and content owners that enables streaming services, including content ingestion, workflow automation, user management, content protection, billing and entitlement, and user applications for various device platforms, such as mobile devices or Smart TVs; Advanced advertising, a unified ad tech solution to insert adverts into various video feeds, including broadcast, internet protocol television, and OTT; and Xstream platform, a cloud-based content monetization platform that provides the range of capabilities, including generation and distribution of FAST channels, streaming enablement via content aggregation, and targeted insertion of advertisement from various demand sources. In addition, it provides professional, and maintenance and technical support services, as well as managed services. The company sells and markets its products and services through a direct sales process, as well as to systems integrators and value-added resellers. It serves cable system operators, telecommunications companies, and satellite operators, as well as broadcasters and other content providers. The company was incorporated in 1993 and is headquartered in Boston, Massachusetts.

About Zapata Computing

Zapata Computing Holdings Inc. operates as an industrial generative artificial intelligence (AI) software company in the United States. The company offers subscription-based solutions that combine software and services to develop generative AI applications, as well as accompanying services to solve complex industrial problems. It also provides Zapata AI Sense, a suite of algorithms and complex mathematical models to enhance analytics and other data-driven applications; Zapata AI Prose, a set of generative AI solutions based on large language models for generic chatbot applications; and Orquestra, an industrial generative AI application development platform, which provides sense and prose. It serves enterprise organizations. Zapata Computing Holdings Inc. was founded in 2017 and is based in Boston, Massachusetts.