Head to Head Survey: Zuora (NYSE:ZUO) and WaveDancer (NASDAQ:WAVD)

Zuora (NYSE:ZUO) and WaveDancer (NASDAQ:WAVD) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Risk and Volatility

Zuora has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, WaveDancer has a beta of 3.15, meaning that its share price is 215% more volatile than the S&P 500.

Institutional & Insider Ownership

83.0% of Zuora shares are held by institutional investors. Comparatively, 5.0% of WaveDancer shares are held by institutional investors. 8.6% of Zuora shares are held by company insiders. Comparatively, 22.7% of WaveDancer shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zuora	-16.34%	-2.99%	-0.58%
WaveDancer	-17.55%	-57.30%	-27.44%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zuora	$431.66 million	3.55	-$68.19 million	($0.49)	-20.36
WaveDancer	$7.74 million	1.00	-$2.03 million	N/A	N/A

WaveDancer has lower revenue, but higher earnings than Zuora.

Analyst Recommendations

This is a breakdown of recent ratings for Zuora and WaveDancer, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zuora	0	5	2	0	2.29
WaveDancer	0	0	0	0	0.00

Zuora currently has a consensus target price of $11.43, indicating a potential upside of 14.57%. Given Zuora’s stronger consensus rating and higher possible upside, equities analysts plainly believe Zuora is more favorable than WaveDancer.

Summary

Zuora beats WaveDancer on 9 of the 12 factors compared between the two stocks.

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.

About WaveDancer

WaveDancer, Inc. develops and maintains information technology systems in the United States. The company also modernizes client information systems; and offers other IT-related professional services to government and commercial organizations. In addition, it offers IT consulting, development, training, migration, and on-site project support; and software development, system modernizations, cloud services, and cybersecurity services. The company was formerly known as Information Analysis Incorporated and changed its name to WaveDancer, Inc. in December 2021. WaveDancer, Inc. was incorporated in 1979 and is headquartered in Fairfax, Virginia.