NetGear (NTGR) and Zoom Technologies (OTCMKTS:ZOOM) Critical Comparison

NetGear (NASDAQ:NTGR) and Zoom Technologies (OTCMKTS:ZOOM) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares NetGear and Zoom Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NetGear -0.19% 8.66% 5.28%
Zoom Technologies N/A N/A N/A

Valuation & Earnings

This table compares NetGear and Zoom Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NetGear $1.06 billion 1.02 -$9.16 million $1.74 19.70
Zoom Technologies N/A N/A N/A N/A N/A

Zoom Technologies has lower revenue, but higher earnings than NetGear.

Insider and Institutional Ownership

100.0% of NetGear shares are owned by institutional investors. 5.1% of NetGear shares are owned by company insiders. Comparatively, 17.7% of Zoom Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

NetGear has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Zoom Technologies has a beta of 95.08, indicating that its stock price is 9,408% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for NetGear and Zoom Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NetGear 0 1 3 0 2.75
Zoom Technologies 0 0 0 0 N/A

NetGear presently has a consensus target price of $71.00, suggesting a potential upside of 107.12%. Given NetGear’s higher possible upside, equities research analysts clearly believe NetGear is more favorable than Zoom Technologies.

Summary

NetGear beats Zoom Technologies on 6 of the 9 factors compared between the two stocks.

NetGear Company Profile

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. It operates in two segments, Connected Home, and Small and Medium Business. The company offers smart home/connected home/broadband access products, such as broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, WiFi network adapters, and digital canvasses; and value added service offerings, including technical support, parental controls, and cybersecurity protection. It also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. The company markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.

Zoom Technologies Company Profile

Zoom Technologies, Inc. does not have significant operations. Previously, it distributed wireless communication products in the United States. The company is headquartered in Beijing, China.

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