36Kr (NASDAQ:KRKR – Get Free Report) and WEBTOON Entertainment (NASDAQ:WBTN – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Profitability
This table compares 36Kr and WEBTOON Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 36Kr | N/A | N/A | N/A |
| WEBTOON Entertainment | -25.09% | 2.10% | 1.60% |
Risk and Volatility
36Kr has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, WEBTOON Entertainment has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 36Kr | $227.94 million | 0.03 | $1.55 million | ($3.40) | -0.93 |
| WEBTOON Entertainment | $1.38 billion | 0.83 | -$345.93 million | ($2.63) | -3.21 |
36Kr has higher earnings, but lower revenue than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than 36Kr, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for 36Kr and WEBTOON Entertainment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 36Kr | 1 | 0 | 0 | 0 | 1.00 |
| WEBTOON Entertainment | 1 | 5 | 2 | 0 | 2.12 |
WEBTOON Entertainment has a consensus price target of $13.70, indicating a potential upside of 62.51%. Given WEBTOON Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe WEBTOON Entertainment is more favorable than 36Kr.
Institutional & Insider Ownership
0.1% of 36Kr shares are owned by institutional investors. 39.4% of 36Kr shares are owned by insiders. Comparatively, 5.6% of WEBTOON Entertainment shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
WEBTOON Entertainment beats 36Kr on 9 of the 14 factors compared between the two stocks.
About 36Kr
36Kr Holdings Inc. provides content and business services in the People's Republic of China. It creates and distributes various content, including insightful reports on companies and industries, timely market updates, thought-provoking editorials, and commentaries, as well as original video and audio content in various industries, such as technology, consumer, retail, healthcare, media and entertainment, and enterprise services. The company's business services include online advertising services; enterprise value-added services, such as integrated marketing, advertisement agent, online/offline event, and consulting services; and subscription services to individuals, institutional investors, and enterprises. 36Kr Holdings Inc. was founded in 2010 and is headquartered in Beijing, the People's Republic of China.
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.
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