Reviewing HubSpot Inc. (HUBS)’s and Zendesk Inc. (NYSE:ZEN)’s results

SEMrush

HubSpot Inc. (NYSE:HUBS) and Zendesk Inc. (NYSE:ZEN) are two firms in the Application Software that compete against each other. Below is a comparison of their analyst recommendations, profitability, risk, institutional ownership, dividends, earnings and valuation.

Valuation & Earnings

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
HubSpot Inc.550.22M13.2659.48M-1.660.00
Zendesk Inc.650.44M14.19146.48M-1.240.00

Table 1 demonstrates HubSpot Inc. and Zendesk Inc.’s top-line revenue, earnings per share and valuation.

Profitability

Table 2 hightlights the return on assets, net margins and return on equity of the two companies.

Net MarginsReturn on EquityReturn on Assets
HubSpot Inc.-10.81%-27.7%-8.2%
Zendesk Inc.-22.52%-32.2%-11.1%

Volatility & Risk

HubSpot Inc. has a beta of 1.91 and its 91.00% more volatile than Standard & Poor’s 500. Competitively, Zendesk Inc. is 66.00% more volatile than Standard & Poor’s 500, because of the 1.66 beta.

Liquidity

The Current Ratio of HubSpot Inc. is 3 while its Quick Ratio stands at 3. The Current Ratio of rival Zendesk Inc. is 1.7 and its Quick Ratio is has 1.7. HubSpot Inc. is better equipped to clear short and long-term obligations than Zendesk Inc.

Analyst Recommendations

HubSpot Inc. and Zendesk Inc. Ratings and Recommendations are available on the next table.

Sell RatingsHold RatingsBuy RatingsRating Score
HubSpot Inc.232.60
Zendesk Inc.132.75

$179.4 is HubSpot Inc.’s consensus target price while its potential upside is 3.53%. On the other hand, Zendesk Inc.’s potential downside is -3.56% and its consensus target price is $81.25. Based on the data given earlier, HubSpot Inc. is looking more favorable than Zendesk Inc., analysts opinion.

Institutional & Insider Ownership

The shares of both HubSpot Inc. and Zendesk Inc. are owned by institutional investors at 95.7% and 98.4% respectively. HubSpot Inc.’s share held by insiders are 6.2%. Comparatively, Zendesk Inc. has 1.8% of it’s share held by insiders.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W)Performance (M)Performance (Q)Performance (HY)Performance (Y)Performance (YTD)
HubSpot Inc.-3.56%3.59%25.52%14.76%46.22%30.43%
Zendesk Inc.-2.59%14.04%34.07%11.24%80.44%31.93%

For the past year HubSpot Inc.’s stock price has smaller growth than Zendesk Inc.

Summary

HubSpot Inc. beats Zendesk Inc. on 7 of the 12 factors.

HubSpot, Inc. provides a cloud-based marketing and sales software platform for businesses in the Americas, Europe, and the Asia Pacific. Its software platform includes integrated applications, such as social media, search engine optimization, blogging, Website content management, marketing automation, email, CRM, analytics, and reporting that enables businesses to attract visitors to their Websites, convert visitors into leads, and close leads into customers and delight customers. The company also offers professional, and phone and email-based support services. HubSpot, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

Zendesk, Inc., a software development company, provides software-as-a-service products for organizations. Its flagship product includes Zendesk Support, a system for tracking, prioritizing, and solving customer support tickets across various channels. The company also offers Zendesk Chat, a live chat software to connect with customers on Websites, in applications, and on mobile devices; Zendesk Talk, a cloud-based call center software; Zendesk Help Center, a self-service destination with articles, interactive forums, and community; Zendesk Message, a customer messaging software; Zendesk Explore that makes customer data accessible across an organization; and Zendesk Connect, a customer intelligence software. It operates in approximately 150 countries and territories. Zendesk, Inc. was founded in 2007 and is headquartered in San Francisco, California.

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