Critical Comparison: ZipRecruiter (ZIP) versus Its Peers

ZipRecruiter (NYSE:ZIP) is one of 192 publicly-traded companies in the “Interactive Media & Services” industry, but how does it contrast to its competitors? We will compare ZipRecruiter to related businesses based on the strength of its valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Risk & Volatility

ZipRecruiter has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, ZipRecruiter’s competitors have a beta of 1.57, suggesting that their average share price is 57% more volatile than the S&P 500.

Valuation and Earnings

This table compares ZipRecruiter and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ZipRecruiter	$448.95 million	-$32.99 million	14.58
ZipRecruiter Competitors	$12.03 billion	$3.44 billion	17.62

ZipRecruiter’s competitors have higher revenue and earnings than ZipRecruiter. ZipRecruiter is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations and price targets for ZipRecruiter and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZipRecruiter	1	3	0	0	1.75
ZipRecruiter Competitors	1382	5893	11310	423	2.57

ZipRecruiter currently has a consensus target price of $4.17, suggesting a potential downside of 18.35%. As a group, “Interactive Media & Services” companies have a potential upside of 29.20%. Given ZipRecruiter’s competitors stronger consensus rating and higher probable upside, analysts plainly believe ZipRecruiter has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

70.6% of ZipRecruiter shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 19.9% of ZipRecruiter shares are owned by company insiders. Comparatively, 23.6% of shares of all “Interactive Media & Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ZipRecruiter and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZipRecruiter	6.20%	N/A	-3.73%
ZipRecruiter Competitors	-349.95%	-12.16%	4.19%

Summary

ZipRecruiter competitors beat ZipRecruiter on 10 of the 13 factors compared.

About ZipRecruiter

ZipRecruiter, Inc. operates an online employment marketplace that connects job seekers and employers. Its platform provides various solutions, such as job posting, online interviews, job alerts, match scores, and application updates. The company was incorporated in 2010 and is based in Santa Monica, California.