Critical Comparison: zSpace (NASDAQ:ZSPC) and UiPath (NYSE:PATH)

UiPath (NYSE:PATH) and zSpace (NASDAQ:ZSPC) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for UiPath and zSpace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UiPath	2	15	2	0	2.00
zSpace	0	1	3	1	3.00

UiPath presently has a consensus price target of $13.62, suggesting a potential upside of 29.67%. zSpace has a consensus price target of $15.25, suggesting a potential upside of 104.42%. Given zSpace’s stronger consensus rating and higher possible upside, analysts plainly believe zSpace is more favorable than UiPath.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UiPath	$1.43 billion	4.05	-$89.88 million	($0.13)	-80.78
zSpace	$41.62 million	4.05	N/A	N/A	N/A

zSpace has lower revenue, but higher earnings than UiPath.

Profitability

This table compares UiPath and zSpace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UiPath	-6.49%	-4.14%	-2.82%
zSpace	N/A	N/A	N/A

Institutional & Insider Ownership

62.5% of UiPath shares are held by institutional investors. 22.4% of UiPath shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

zSpace beats UiPath on 7 of the 11 factors compared between the two stocks.

About UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.

About zSpace

zSpace Technologies, Inc. is a provider of commercial augmented reality and virtual reality technology principally in the education market. The Company offers differentiated hardware along with learning software modules for K-12 science, technology, engineering, game design and mathematics applications, as well as workforce-oriented career and technical education applications. zSpace Technologies Inc. is based in SAN JOSE, Calif.