Nebius Group (NASDAQ:NBIS) & Zoom Video Communications (NASDAQ:ZM) Head-To-Head Comparison

Nebius Group (NASDAQ:NBIS) and Zoom Video Communications (NASDAQ:ZM) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares Nebius Group and Zoom Video Communications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nebius Group	$8.92 billion	1.01	$221.50 million	($0.57)	-66.89
Zoom Video Communications	$4.53 billion	5.83	$637.46 million	$3.00	28.71

Zoom Video Communications has lower revenue, but higher earnings than Nebius Group. Nebius Group is trading at a lower price-to-earnings ratio than Zoom Video Communications, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

21.9% of Nebius Group shares are owned by institutional investors. Comparatively, 66.5% of Zoom Video Communications shares are owned by institutional investors. 10.8% of Zoom Video Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Nebius Group and Zoom Video Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nebius Group	-4.76%	7.18%	4.00%
Zoom Video Communications	20.34%	10.98%	8.89%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Nebius Group and Zoom Video Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nebius Group	0	0	1	0	3.00
Zoom Video Communications	0	16	8	1	2.40

Nebius Group presently has a consensus target price of $51.00, suggesting a potential upside of 33.75%. Zoom Video Communications has a consensus target price of $89.10, suggesting a potential upside of 3.45%. Given Nebius Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Nebius Group is more favorable than Zoom Video Communications.

Summary

Zoom Video Communications beats Nebius Group on 11 of the 14 factors compared between the two stocks.

About Nebius Group

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability. It also offers Avride, an autonomous driving solution which targets ride-hailing, logistics, e-commerce, and food/grocery delivery as application domains, as well as focuses on autonomous vehicles and delivery robots; and TripleTen, an EdTech service that prepares specialists for STEM roles, and equipping them with essential technology skills. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is based in Schiphol, the Netherlands.

About Zoom Video Communications

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom’s video-based communications solutions, as well as integrate Zoom’s technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.