Financial Analysis: Zenvia (NASDAQ:ZENV) vs. Applied Digital (NASDAQ:APLD)
by Renee Jackson · The Cerbat GemApplied Digital (NASDAQ:APLD – Get Free Report) and Zenvia (NASDAQ:ZENV – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
Risk and Volatility
Applied Digital has a beta of 5.72, meaning that its stock price is 472% more volatile than the S&P 500. Comparatively, Zenvia has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Applied Digital and Zenvia, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Digital | 2 | 1 | 11 | 3 | 2.88 |
| Zenvia | 1 | 0 | 0 | 0 | 1.00 |
Applied Digital presently has a consensus target price of $68.15, suggesting a potential upside of 174.27%. Given Applied Digital’s stronger consensus rating and higher probable upside, equities analysts clearly believe Applied Digital is more favorable than Zenvia.
Valuation and Earnings
This table compares Applied Digital and Zenvia”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Digital | $611.31 million | 11.85 | -$244.00 million | ($0.89) | -27.92 |
| Zenvia | $1.10 billion | 0.02 | -$28.67 million | ($0.40) | -1.17 |
Zenvia has higher revenue and earnings than Applied Digital. Applied Digital is trading at a lower price-to-earnings ratio than Zenvia, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Applied Digital and Zenvia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Digital | -37.78% | -16.42% | -4.00% |
| Zenvia | -10.62% | -14.36% | -6.52% |
Institutional and Insider Ownership
65.7% of Applied Digital shares are held by institutional investors. Comparatively, 49.2% of Zenvia shares are held by institutional investors. 9.5% of Applied Digital shares are held by insiders. Comparatively, 78.4% of Zenvia shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Applied Digital beats Zenvia on 8 of the 15 factors compared between the two stocks.
About Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
About Zenvia
Zenvia Inc. provides customer experience communications platform which empowers businesses to create unique journeys for their end-customers along their life cycle across range of B2C verticals. Zenvia Inc. is based in S?O PAULO.