Critical Survey: Zuora (NYSE:ZUO) and LeddarTech (NASDAQ:LDTC)

LeddarTech (NASDAQ:LDTC) and Zuora (NYSE:ZUO) 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 analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Volatility and Risk

LeddarTech has a beta of -1.67, indicating that its share price is 267% less volatile than the S&P 500. Comparatively, Zuora has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Profitability

This table compares LeddarTech and Zuora’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LeddarTech	-3,291.32%	N/A	-47.90%
Zuora	-16.34%	-2.99%	-0.58%

Analyst Ratings

This is a breakdown of current recommendations for LeddarTech and Zuora, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LeddarTech	0	1	1	0	2.50
Zuora	0	5	1	0	2.17

LeddarTech presently has a consensus target price of $3.00, indicating a potential upside of 185.71%. Zuora has a consensus target price of $11.33, indicating a potential upside of 13.62%. Given LeddarTech’s stronger consensus rating and higher probable upside, equities research analysts plainly believe LeddarTech is more favorable than Zuora.

Earnings and Valuation

This table compares LeddarTech and Zuora”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LeddarTech	$350,000.00	86.31	-$121.92 million	($14.93)	-0.07
Zuora	$431.66 million	3.55	-$68.19 million	($0.49)	-20.36

Zuora has higher revenue and earnings than LeddarTech. Zuora is trading at a lower price-to-earnings ratio than LeddarTech, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

9.6% of LeddarTech shares are held by institutional investors. Comparatively, 83.0% of Zuora shares are held by institutional investors. 8.6% of Zuora 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.

Summary

Zuora beats LeddarTech on 8 of the 12 factors compared between the two stocks.

About LeddarTech

LeddarTech Holdings Inc. provides AI-based fusion and perception software solutions for advanced driver assistance solutions and autonomous driving applications in Canada. It offers LeddarVision, a raw sensor fusion and perception platform for automotive and off-road industrial vehicles. The company was founded in 2007 and is based in Quebec City, Canada.

About Zuora

Zuora, Inc. provides a monetization suite for modern businesses to help companies launch and scale new services and operate dynamic customer-centric business models. The company offers Zuora Billing that allows customers to deploy various pricing and packaging strategies to monetize their recurring revenue streams, bill customers, calculate prorations when subscriptions change, and automate billing and payment operations; Zuora Revenue, a revenue recognition and automation solution that accounting teams use to manage their complex revenue streams; Zuora Payments to provide payment orchestration services for companies looking to operate globally; and Zephr, a digital subscriber experience platform that helps companies orchestrate dynamic experiences that increase conversion, reduce churn, and nurture ongoing subscriber relationships. It also provides Zuora Platform, an orchestration engine for all subscription data and processes; and other software. The company markets its products through its systems integrators, consultants, and ecosystem partners. Zuora, Inc. was incorporated in 2006 and is headquartered in Redwood City, California.