Contrasting Zoom Video Communications (NASDAQ:ZM) & OneConnect Financial Technology (NASDAQ:OCFT)
Zoom Video Communications (NASDAQ:ZM) and OneConnect Financial Technology (NYSE:OCFT) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Insider & Institutional Ownership
38.0% of Zoom Video Communications shares are owned by institutional investors. Comparatively, 9.2% of OneConnect Financial Technology shares are owned by institutional investors. 24.3% of Zoom Video Communications shares 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 Ratings
This is a summary of recent ratings and price targets for Zoom Video Communications and OneConnect Financial Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zoom Video Communications | 2 | 10 | 16 | 0 | 2.50 |
| OneConnect Financial Technology | 0 | 0 | 0 | 0 | N/A |
Zoom Video Communications currently has a consensus target price of $367.76, suggesting a potential downside of 25.31%. Given Zoom Video Communications’ higher possible upside, equities research analysts plainly believe Zoom Video Communications is more favorable than OneConnect Financial Technology.
Profitability
This table compares Zoom Video Communications and OneConnect Financial Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zoom Video Communications | 17.10% | 27.93% | 14.44% |
| OneConnect Financial Technology | N/A | N/A | N/A |
Earnings & Valuation
This table compares Zoom Video Communications and OneConnect Financial Technology’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zoom Video Communications | $622.66 million | 224.92 | $25.31 million | $0.09 | 5,471.22 |
| OneConnect Financial Technology | $330.51 million | 24.00 | -$240.28 million | ($0.75) | -28.92 |
Zoom Video Communications has higher revenue and earnings than OneConnect Financial Technology. OneConnect Financial Technology is trading at a lower price-to-earnings ratio than Zoom Video Communications, indicating that it is currently the more affordable of the two stocks.
Summary
Zoom Video Communications beats OneConnect Financial Technology on 12 of the 12 factors compared between the two stocks.
Zoom Video Communications Company Profile
Zoom Video Communications, Inc. provides a video-first communications platform that changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It connects people through frictionless video, voice, chat, and content sharing. The company’s cloud-native platform enables face-to-face video experiences and connects users across various devices and locations in a single meeting. It serves education, entertainment/media, enterprise infrastructure, finance, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. Zoom Video Communications, Inc. was founded in 2011 and is headquartered in San Jose, California.
OneConnect Financial Technology Company Profile
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