Tyler Technologies (NYSE:TYL) vs. ZoomInfo Technologies (NASDAQ:ZI) Critical Review
Tyler Technologies (NYSE:TYL – Get Rating) and ZoomInfo Technologies (NASDAQ:ZI – Get Rating) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Insiders & Institutional Ownership
90.1% of Tyler Technologies shares are held by institutional investors. Comparatively, 82.9% of ZoomInfo Technologies shares are held by institutional investors. 2.0% of Tyler Technologies shares are held by company insiders. Comparatively, 9.7% of ZoomInfo Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
profitability
This table compares Tyler Technologies and ZoomInfo Technologies’ net margins, return on equity and return on assets.
| net margins | return on equity | return on assets | |
| Tyler Technologies | 9.38% | 10.62% | 5.10% |
| ZoomInfo Technologies | 14.34% | 8.46% | 2.51% |
Volatility and Risk
Tyler Technologies has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Tyler Technologies and ZoomInfo Technologies, as reported by MarketBeat.com.
| sell ratings | hold ratings | Buy rating | Strong Buy Ratings | rating score | |
| Tyler Technologies | 0 | 4 | 8th | 0 | 2.67 |
| ZoomInfo Technologies | 0 | 0 | 17 | 0 | 3.00 |
Tyler Technologies currently has a consensus price target of $514.42, indicating a potential upside of 45.05%. ZoomInfo Technologies has a consensus price target of $76.00, indicating a potential upside of 80.65%. Given ZoomInfo Technologies’ consensus stronger rating and higher probable upside, analysts plainly believe ZoomInfo Technologies is more favorable than Tyler Technologies.
Valuation and Earnings
This table compares Tyler Technologies and ZoomInfo Technologies’ gross revenue, earnings per share (EPS) and valuation.
| Gross revenue | Price/sales ratio | Net Income | Earnings Per Share | Price/earnings ratio | |
| Tyler Technologies | $1.59 billion | 9.24 | $161.46 million | $3.88 | 91.41 |
| ZoomInfo Technologies | $747.20 million | 22.71 | $116.80 million | $0.28 | 150.25 |
Tyler Technologies has higher revenue and earnings than ZoomInfo Technologies. Tyler Technologies is trading at a lower price-to-earnings ratio than ZoomInfo Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
ZoomInfo Technologies beats Tyler Technologies on 8 of the 14 factors compared between the two stocks.
Tyler Technologies Company Profile (Get Rating)
Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. The company operates in three segments: Enterprise Software; appraisal and tax; and NIC. It offers financial management solutions, including modular fund accounting systems for government agencies or not-for-profit entities; utility billing systems for the billing and collection of metered and non-metered services; products to automate city and county functions, such as municipal courts, parking tickets, equipment and project costing, animal and business licenses, permits and inspections, code enforcement, citizen complaint tracking, ambulance billing, fleet maintenance, and cemetery records management; and student information and transportation solutions for K-12 schools. The company also provides a suite of judicial solutions comprising court case management, court and law enforcement, prosecutor, and supervision systems to handle multi-jurisdictional county or statewide implementations, and single county systems; public safety software solutions; systems and software to automate the appraisal and assessment of real and personal property, as well as tax applications for agencies that bill and collect taxes; planning, regulatory, and maintenance software solutions for public sector agencies; software applications to enhance and automate operations involving records and document management; and data and insights solutions. In addition, it offers software as a service arrangements and electronic document filing solutions for courts and law offices; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. The company has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. Tyler Technologies, Inc. was founded in 1966 and is headquartered in Plano, Texas.
ZoomInfo Technologies Company Profile (Get Rating)
ZoomInfo Technologies Inc., through its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company’s cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry verticals, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. ZoomInfo Technologies Inc. was founded in 2007 and is headquartered in Vancouver, Washington.
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