Braze (NASDAQ:BRZE) versus ZoomInfo Technologies (NASDAQ:ZI) Critical Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Braze	-20.41%	-24.88%	-13.53%
ZoomInfo Technologies	0.74%	12.05%	3.46%

Insider & Institutional Ownership

90.5% of Braze shares are owned by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are owned by institutional investors. 24.0% of Braze shares are owned by insiders. Comparatively, 8.1% of ZoomInfo Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Braze has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares Braze and ZoomInfo Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braze	$471.80 million	9.77	-$129.17 million	($1.14)	-39.06
ZoomInfo Technologies	$1.22 billion	2.78	$107.30 million	$0.03	329.67

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Braze and ZoomInfo Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braze	0	1	19	0	2.95
ZoomInfo Technologies	6	12	4	0	1.91

Braze currently has a consensus price target of $53.74, suggesting a potential upside of 20.68%. ZoomInfo Technologies has a consensus price target of $12.57, suggesting a potential upside of 27.05%. Given ZoomInfo Technologies’ higher possible upside, analysts plainly believe ZoomInfo Technologies is more favorable than Braze.

Summary

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

About Braze

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.

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.