Comparing Zuora (NYSE:ZUO) and WaveDancer (NASDAQ:WAVD)

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

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for WaveDancer and Zuora, as reported by MarketBeat.com.

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

Zuora has a consensus price target of $11.43, indicating a potential upside of 14.69%. Given Zuora’s stronger consensus rating and higher probable upside, analysts plainly believe Zuora is more favorable than WaveDancer.

Volatility and Risk

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

Insider & Institutional Ownership

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

Earnings & Valuation

This table compares WaveDancer and Zuora”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WaveDancer	$7.74 million	0.96	-$2.03 million	N/A	N/A
Zuora	$431.66 million	3.55	-$68.19 million	($0.49)	-20.34

WaveDancer has higher earnings, but lower revenue than Zuora.

Summary

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

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.

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.