Comparing EverQuote (NASDAQ:EVER) and Zhihu (NYSE:ZH)

Zhihu (NYSE:ZHGet Free Report) and EverQuote (NASDAQ:EVERGet Free Report) are both small-cap communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Earnings & Valuation

This table compares Zhihu and EverQuote”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zhihu $393.10 million 0.73 -$27.58 million ($0.36) -9.01
EverQuote $692.52 million 1.24 $99.31 million $3.08 7.73

EverQuote has higher revenue and earnings than Zhihu. Zhihu is trading at a lower price-to-earnings ratio than EverQuote, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

28.9% of Zhihu shares are owned by institutional investors. Comparatively, 91.5% of EverQuote shares are owned by institutional investors. 13.6% of Zhihu shares are owned by company insiders. Comparatively, 23.7% of EverQuote shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Zhihu and EverQuote, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zhihu 1 0 0 0 1.00
EverQuote 0 2 6 0 2.75

EverQuote has a consensus target price of $25.67, indicating a potential upside of 7.75%. Given EverQuote’s stronger consensus rating and higher possible upside, analysts clearly believe EverQuote is more favorable than Zhihu.

Profitability

This table compares Zhihu and EverQuote’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zhihu -7.25% -4.83% -3.60%
EverQuote 15.16% 50.29% 36.69%

Volatility & Risk

Zhihu has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Summary

EverQuote beats Zhihu on 14 of the 14 factors compared between the two stocks.

About Zhihu

(Get Free Report)

Zhihu Inc. operates an online content community in the People’s Republic of China. Its community allows people to seek inspiration, find solutions, make decisions, and have fun. The company offers technology, business support, and consulting services; information transmission, software, and information technology services. It also offers information and marketing services; vocational training; and internet services, as well as holds audio-visual permit. Zhihu Inc. was founded in 2010 and is headquartered in Beijing, the People’s Republic of China.

About EverQuote

(Get Free Report)

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.

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