Zhihu (NYSE:ZH – Get Free Report) and EverQuote (NASDAQ:EVER – Get 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 |
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
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
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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