Zvelo (OTCMKTS:ZVLO) & WEBTOON Entertainment (NASDAQ:WBTN) Critical Review

Zvelo (OTCMKTS:ZVLO) and WEBTOON Entertainment (NASDAQ:WBTN) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Zvelo and WEBTOON Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zvelo	0	0	0	0	0.00
WEBTOON Entertainment	1	4	4	0	2.33

WEBTOON Entertainment has a consensus price target of $17.33, indicating a potential upside of 31.31%. Given WEBTOON Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe WEBTOON Entertainment is more favorable than Zvelo.

Risk and Volatility

Zvelo has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.

Profitability

This table compares Zvelo and WEBTOON Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zvelo	N/A	N/A	N/A
WEBTOON Entertainment	-9.28%	-2.14%	-1.67%

Earnings & Valuation

This table compares Zvelo and WEBTOON Entertainment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zvelo	N/A	N/A	N/A	N/A	N/A
WEBTOON Entertainment	$1.35 billion	1.28	-$143.90 million	($1.01)	-13.07

Zvelo has higher earnings, but lower revenue than WEBTOON Entertainment.

Summary

WEBTOON Entertainment beats Zvelo on 5 of the 8 factors compared between the two stocks.

About Zvelo

zvelo, Inc. provides Website content and contextual categorization, and malicious and botnet detection products. It offers Web filtering, brand safety, semantic targeting, traffic quality analysis, contextual targeting, and ad fraud prevention solutions for network security and mobile service providers, and subscriber analytics. The company was formerly known as eSoft, Inc. and changed its name to zvelo, Inc. in September 2010. zvelo, Inc. was founded in 1984 and is headquartered in Greenwood Village, Colorado.

About WEBTOON Entertainment

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.