Head to Head Contrast: Zynga (ZNGA) vs. Its Competitors

Zynga (NASDAQ: ZNGA) is one of 62 publicly-traded companies in the “Data processing & preparation” industry, but how does it weigh in compared to its rivals? We will compare Zynga to similar companies based on the strength of its valuation, profitability, institutional ownership, risk, dividends, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent recommendations for Zynga and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zynga 1 4 8 0 2.54
Zynga Competitors 327 1564 2259 75 2.49

Zynga presently has a consensus target price of $4.30, indicating a potential upside of 5.49%. As a group, “Data processing & preparation” companies have a potential upside of 2.23%. Given Zynga’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Zynga is more favorable than its rivals.

Risk & Volatility

Zynga has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Zynga’s rivals have a beta of 0.57, indicating that their average share price is 43% less volatile than the S&P 500.

Insider and Institutional Ownership

70.8% of Zynga shares are held by institutional investors. Comparatively, 54.7% of shares of all “Data processing & preparation” companies are held by institutional investors. 11.9% of Zynga shares are held by company insiders. Comparatively, 21.3% of shares of all “Data processing & preparation” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Zynga and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zynga 4.77% 2.57% 2.17%
Zynga Competitors -19.75% -71.10% -5.73%

Earnings and Valuation

This table compares Zynga and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zynga $861.39 million $26.63 million 136.00
Zynga Competitors $930.33 million $43.66 million 18.46

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

Summary

Zynga beats its rivals on 8 of the 13 factors compared.

About Zynga

Zynga Inc. develops, markets, and operates social games as live services in the United States and internationally. The company's games are played on mobile platforms, such as iOS and Android operating systems, as well as on social networking sites, including Facebook. It also provides advertising services comprising mobile and display ads, engagement ads and offers, and branded virtual goods and sponsorships to advertising agencies and brokers; and software licensing and maintenance services related to NaturalMotion technology, as well as licenses its own brands. The company was formerly known as Zynga Game Network Inc. and changed its name to Zynga Inc. in November 2010. Zynga Inc. was founded in 2007 and is headquartered in San Francisco, California.

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