Critical Review: Consensus Cloud Solutions (NASDAQ:CCSI) and zvelo (OTCMKTS:ZVLO)

Consensus Cloud Solutions (NASDAQ:CCSI) and zvelo (OTCMKTS:ZVLO) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Consensus Cloud Solutions and zvelo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consensus Cloud Solutions	25.52%	-83.93%	15.35%
zvelo	N/A	N/A	N/A

Insider & Institutional Ownership

93.9% of Consensus Cloud Solutions shares are held by institutional investors. 2.5% of Consensus Cloud Solutions shares are held by insiders. Comparatively, 5.1% of zvelo shares are held by 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.

Earnings and Valuation

This table compares Consensus Cloud Solutions and zvelo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consensus Cloud Solutions	$350.38 million	1.35	$77.29 million	$4.62	5.25
zvelo	N/A	N/A	N/A	N/A	N/A

Consensus Cloud Solutions has higher revenue and earnings than zvelo.

Volatility & Risk

Consensus Cloud Solutions has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, zvelo has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Consensus Cloud Solutions and zvelo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consensus Cloud Solutions	2	0	3	0	2.20
zvelo	0	0	0	0	0.00

Consensus Cloud Solutions currently has a consensus price target of $27.40, suggesting a potential upside of 12.90%. Given Consensus Cloud Solutions’ stronger consensus rating and higher possible upside, equities analysts plainly believe Consensus Cloud Solutions is more favorable than zvelo.

Summary

Consensus Cloud Solutions beats zvelo on 8 of the 10 factors compared between the two stocks.

About Consensus Cloud Solutions

Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. The company offers eFax Corporate, a digital cloud-fax technology; Unite, a single platform that allows the user to choose between various protocols to send and receive healthcare information and can integrate into an existing electronic health record system or stand-alone if no EHR is present. It also offers jsign, an electronic and digital signature solution; Conductor, an interface engine and interoperability platform that provides integration technology; Clarity that transforms unstructured documents into structured actionable data; and eFax, an online faxing solution, as well as other products under the MyFax, MetroFax, Sfax, and SRfax brands. In addition, the company provides ECFax, an Corporate eFax. It serves healthcare, government, financial services, law, and education sectors. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.

About zvelo

zvelo, Inc. provides Website content and contextual categorization, and malicious and botnet detection products. It offers Web filtering, brand safety, semantic targeting, traffic quality analysis, contextual targeting, and ad fraud prevention solutions for network security and mobile service providers, and subscriber analytics. The company was formerly known as eSoft, Inc. and changed its name to zvelo, Inc. in September 2010. zvelo, Inc. was founded in 1984 and is headquartered in Greenwood Village, Colorado.