ZW Data Action Technologies (NASDAQ:CNET – Get Rating) and VIQ Solutions (NASDAQ:VQS – Get Rating) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Volatility & Risk
ZW Data Action Technologies has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, VIQ Solutions has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500.
Institutional & Insider Ownership
0.4% of ZW Data Action Technologies shares are held by institutional investors. Comparatively, 17.4% of VIQ Solutions shares are held by institutional investors. 18.8% of ZW Data Action Technologies shares are held by insiders. Comparatively, 22.9% of VIQ Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZW Data Action Technologies | 0 | 0 | 0 | 0 | N/A |
| VIQ Solutions | 0 | 0 | 2 | 0 | 3.00 |
VIQ Solutions has a consensus price target of $1.13, suggesting a potential upside of 388.49%. Given VIQ Solutions’ higher probable upside, analysts clearly believe VIQ Solutions is more favorable than ZW Data Action Technologies.
Valuation and Earnings
This table compares ZW Data Action Technologies and VIQ Solutions’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZW Data Action Technologies | $26.24 million | 0.39 | -$9.79 million | ($0.90) | -1.60 |
| VIQ Solutions | $45.84 million | 0.17 | -$8.71 million | ($0.34) | -0.68 |
VIQ Solutions has higher revenue and earnings than ZW Data Action Technologies. ZW Data Action Technologies is trading at a lower price-to-earnings ratio than VIQ Solutions, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ZW Data Action Technologies and VIQ Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZW Data Action Technologies | -37.32% | -56.31% | -38.33% |
| VIQ Solutions | -22.89% | -59.22% | -26.57% |
Summary
VIQ Solutions beats ZW Data Action Technologies on 10 of the 13 factors compared between the two stocks.
About ZW Data Action Technologies
ZW Data Action Technologies, Inc. is a holding company, which engages in the operation of a one-stop services on omni-channel advertising, precision marketing, and data analysis management system. It also engages in the development of blockchain enabled web/mobile applications and provision of software solutions. It operates through the following segments: Internet Advertising and Data Services, Ecommerce O2O Advertising and Marketing Services, Blockchain Technology, and Corporate. The company was founded by Han Dong Cheng and Zhi Ge Zhang in 2003 and is headquartered in Beijing, China.
About VIQ Solutions
VIQ Solutions, Inc. engages in the provision of artificial intelligence driven digital voice and video capture technology and transcription solutions. Its solutions include CapturePro, MobileMic Pro, NetScribe, and aiAssist, FirstDraft and Lexel. The firm serves the law enforcement, legal, insurance, media, corporate, and government clients. The company was founded on November 10, 2004 and is headquartered in Mississauga, Canada.
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