Contrasting Zynga (ZNGA) and The Competition

Zynga (NASDAQ: ZNGA) is one of 61 publicly-traded companies in the “Data processing & preparation” industry, but how does it weigh in compared to its rivals? We will compare Zynga to related companies based on the strength of its earnings, dividends, analyst recommendations, valuation, institutional ownership, risk and profitability.

Analyst Ratings

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This is a summary of current ratings and target prices for Zynga and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zynga 1 4 8 0 2.54
Zynga Competitors 319 1547 2236 71 2.49

Zynga presently has a consensus price target of $4.22, indicating a potential upside of 12.32%. As a group, “Data processing & preparation” companies have a potential upside of 4.46%. Given Zynga’s stronger consensus rating and higher probable upside, research analysts plainly believe Zynga is more favorable than its rivals.

Institutional & Insider Ownership

71.0% of Zynga shares are held by institutional investors. Comparatively, 58.2% of shares of all “Data processing & preparation” companies are held by institutional investors. 11.9% of Zynga shares are held by company insiders. Comparatively, 19.6% of shares of all “Data processing & preparation” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

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

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 125.33
Zynga Competitors $927.98 million $42.39 million 17.75

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.

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 -21.05% -65.50% -6.00%

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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