Recruit (OTCMKTS:RCRRF) & ZTE (OTCMKTS:ZTCOY) Critical Review

Profitability

This table compares ZTE and Recruit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZTE	5.89%	13.25%	4.04%
Recruit	10.33%	19.40%	12.59%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZTE	$17.75 billion	0.53	$1.06 billion	$0.47	8.60
Recruit	$23.67 billion	3.65	$2.44 billion	$1.54	34.82

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

Risk & Volatility

ZTE has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Recruit has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Summary

Recruit beats ZTE on 9 of the 9 factors compared between the two stocks.

About ZTE

ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer systems, core networks, telecommunication software systems and services, and other technologies and product solutions for meeting carries' requirements. The Consumer Business segment offers smart phones, mobile data terminals, family terminals, and fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.

About Recruit

Recruit Holdings Co., Ltd. provides HR technology and business solutions that transforms the world of work. It operates through three segments: HR Technology, Matching & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Matching & Solutions segment offers HR solutions that support business clients’ recruiting and hiring activities and individual users’ job search activities through its job advertising services and placement services. This segment also provides marketing solutions that provide matching platforms for businesses in various industries, including housing and real estate, beauty, bridal, travel, dining, and others, as well as SaaS solutions, which are business and management support tools for small and medium-sized companies. The Staffing segment provides temporary staffing services in Japan, Europe, the United States, and Australia. Recruit Holdings Co., Ltd. operates in more than 60 countries. The company was formerly known as Recruit Co., Ltd. and changed its name to Recruit Holdings Co., Ltd. in October 2012. Recruit Holdings Co., Ltd. was founded in 1960 and is headquartered in Tokyo, Japan.