LiveWorld (OTCMKTS:LVWD – Get Free Report) and Zhihu (NYSE:ZH – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Profitability
This table compares LiveWorld and Zhihu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LiveWorld | 4.32% | 9.43% | 5.24% |
| Zhihu | -7.18% | -4.82% | -3.57% |
Volatility and Risk
LiveWorld has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, Zhihu has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LiveWorld | 0 | 0 | 0 | 0 | 0.00 |
| Zhihu | 1 | 0 | 0 | 0 | 1.00 |
Insider and Institutional Ownership
28.9% of Zhihu shares are held by institutional investors. 16.3% of LiveWorld 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 stock will outperform the market over the long term.
Earnings & Valuation
This table compares LiveWorld and Zhihu”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LiveWorld | $11.14 million | 0.45 | $330,000.00 | $0.01 | 11.01 |
| Zhihu | $393.10 million | 0.70 | -$27.58 million | ($0.36) | -8.63 |
LiveWorld has higher earnings, but lower revenue than Zhihu. Zhihu is trading at a lower price-to-earnings ratio than LiveWorld, indicating that it is currently the more affordable of the two stocks.
Summary
LiveWorld beats Zhihu on 7 of the 12 factors compared between the two stocks.
About LiveWorld
LiveWorld, Inc., a digital agency and software company, provides social media and technology solutions for pharmaceuticals, healthcare, and financial-travel service industries. It offers consulting, strategy, and creative solutions with human agents for moderation, engagement, customer care, and adverse events management, as well as conversation management software, and chatbots for digital campaigns and social media programs. The company was formerly known as Talk City, Inc. and changed its name to Liveworld, Inc. in May 2001. Liveworld, Inc. was incorporated in 1996 and is headquartered in Campbell, California.
About Zhihu
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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