Comparing Vertex (NASDAQ:VERX) and ZoomInfo Technologies (NASDAQ:ZI)

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

Valuation and Earnings

This table compares Vertex and ZoomInfo Technologies’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertex	$572.39 million	8.04	-$13.09 million	($0.10)	-298.20
ZoomInfo Technologies	$1.24 billion	4.67	$107.30 million	$0.27	56.48

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

Risk & Volatility

Vertex has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Vertex and ZoomInfo Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertex	0	4	6	0	2.60
ZoomInfo Technologies	2	6	13	0	2.52

Vertex currently has a consensus target price of $35.78, suggesting a potential upside of 19.98%. ZoomInfo Technologies has a consensus target price of $21.53, suggesting a potential upside of 41.15%. Given ZoomInfo Technologies’ higher possible upside, analysts clearly believe ZoomInfo Technologies is more favorable than Vertex.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vertex	-2.29%	16.15%	5.08%
ZoomInfo Technologies	8.66%	11.25%	3.59%

Institutional and Insider Ownership

59.1% of Vertex shares are held by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are held by institutional investors. 45.0% of Vertex shares are held by insiders. Comparatively, 8.2% of ZoomInfo Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

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

About Vertex

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

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.