Financial Review: ZipRecruiter (ZIP) versus Its Competitors

ZipRecruiter (NYSE:ZIP) is one of 191 public companies in the “Interactive Media & Services” industry, but how does it contrast to its peers? We will compare ZipRecruiter to related companies based on the strength of its valuation, profitability, earnings, institutional ownership, risk, analyst recommendations and dividends.

Insider & Institutional Ownership

70.6% of ZipRecruiter shares are owned by institutional investors. Comparatively, 41.1% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 19.9% of ZipRecruiter shares are owned by insiders. Comparatively, 23.4% of shares of all “Interactive Media & Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for ZipRecruiter and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZipRecruiter	1	4	0	0	1.80
ZipRecruiter Competitors	1341	5806	11243	419	2.57

ZipRecruiter currently has a consensus price target of $4.00, suggesting a potential upside of 1.91%. As a group, “Interactive Media & Services” companies have a potential upside of 29.19%. Given ZipRecruiter’s peers stronger consensus rating and higher possible upside, analysts plainly believe ZipRecruiter has less favorable growth aspects than its peers.

Risk & Volatility

ZipRecruiter has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, ZipRecruiter’s peers have a beta of 1.72, meaning that their average share price is 72% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
ZipRecruiter	$448.95 million	-$32.99 million	-14.02
ZipRecruiter Competitors	$12.18 billion	$3.51 billion	8.53

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZipRecruiter	-5.58%	N/A	-4.36%
ZipRecruiter Competitors	-356.46%	-19.81%	4.73%

Summary

ZipRecruiter peers 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.