Reviewing Zhihu (NYSE:ZH) and 36Kr (NASDAQ:KRKR)

36Kr (NASDAQ:KRKR – Get Free Report) and Zhihu (NYSE:ZH – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for 36Kr and Zhihu, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
36Kr 1 0 0 0 1.00
Zhihu 1 0 0 0 1.00

Risk and Volatility

36Kr has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Zhihu has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Valuation & Earnings

This table compares 36Kr and Zhihu”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
36Kr $259.35 million 0.02 $1.55 million ($2.40) -1.23
Zhihu $393.10 million 0.75 -$27.58 million ($0.55) -6.19

36Kr has higher earnings, but lower revenue than Zhihu. Zhihu is trading at a lower price-to-earnings ratio than 36Kr, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.1% of 36Kr shares are held by institutional investors. Comparatively, 28.9% of Zhihu shares are held by institutional investors. 39.4% of 36Kr shares are held by insiders. Comparatively, 13.6% of Zhihu shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares 36Kr and Zhihu’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
Zhihu -11.33% -7.71% -5.75%

Summary

36Kr beats Zhihu on 7 of the 11 factors compared between the two stocks.

About 36Kr

(Get Free Report)

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 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.

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