Reviewing EverQuote (NASDAQ:EVER) & ZoomInfo Technologies (NASDAQ:GTM)

ZoomInfo Technologies (NASDAQ:GTM) and EverQuote (NASDAQ:EVER) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Volatility & Risk

ZoomInfo Technologies has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for ZoomInfo Technologies and EverQuote, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	7	10	1	0	1.67
EverQuote	0	2	6	0	2.75

ZoomInfo Technologies presently has a consensus price target of $5.93, suggesting a potential upside of 44.76%. EverQuote has a consensus price target of $28.17, suggesting a potential upside of 24.03%. Given ZoomInfo Technologies’ higher probable upside, analysts plainly believe ZoomInfo Technologies is more favorable than EverQuote.

Earnings and Valuation

This table compares ZoomInfo Technologies and EverQuote”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.25 billion	0.95	$124.20 million	($1.86)	-2.20
EverQuote	$692.52 million	1.18	$99.31 million	$3.08	7.37

ZoomInfo Technologies has higher revenue and earnings than EverQuote. ZoomInfo Technologies is trading at a lower price-to-earnings ratio than EverQuote, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	-43.01%	20.16%	4.33%
EverQuote	15.16%	50.29%	36.69%

Institutional and Insider Ownership

95.5% of ZoomInfo Technologies shares are owned by institutional investors. Comparatively, 91.5% of EverQuote shares are owned by institutional investors. 9.9% of ZoomInfo Technologies shares are owned by company insiders. Comparatively, 23.7% of EverQuote shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

EverQuote beats ZoomInfo Technologies on 9 of the 14 factors compared between the two stocks.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., through 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 verticals, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. ZoomInfo Technologies Inc. was founded in 2007 and is headquartered in Vancouver, Washington.

About EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.