Analyzing China CGame (OTCMKTS:CCGM) and Zhihu (NYSE:ZH)

China CGame (OTCMKTS:CCGM) and Zhihu (NYSE:ZH) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Insider & Institutional Ownership

28.9% of Zhihu shares are owned by institutional investors. 53.4% of China CGame shares are owned by company insiders. Comparatively, 13.6% of Zhihu shares are owned by company 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.

Valuation & Earnings

This table compares China CGame 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
China CGame	N/A	N/A	N/A	N/A	N/A
Zhihu	$493.05 million	0.60	-$23.54 million	$0.16	20.84

China CGame has higher earnings, but lower revenue than Zhihu.

Profitability

This table compares China CGame and Zhihu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China CGame	N/A	N/A	N/A
Zhihu	3.41%	2.42%	1.78%

Analyst Recommendations

This is a breakdown of recent ratings for China CGame and Zhihu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China CGame	0	0	0	0	0.00
Zhihu	1	0	0	0	1.00

Given China CGame’s higher possible upside, analysts clearly believe China CGame is more favorable than Zhihu.

Volatility and Risk

China CGame has a beta of 13.34, meaning that its share price is 1,234% more volatile than the S&P 500. Comparatively, Zhihu has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Summary

Zhihu beats China CGame on 6 of the 9 factors compared between the two stocks.

About China CGame

China CGame, Inc. develops Massively Multiplayer Online Role Playing Game (MMORPG) in China. It focuses on self-developed MMORPGs game titles that are based on China’s iconic characters and nostalgic epochs. The company owns two self-developed game engines, Turbo and Apocalypse. It intends to sell prepaid game cards to a range of regional distributors in China; and directly sell game points to players through its online sales platform. The company was formerly known as China Architectural Engineering, Inc. and changed its name to China CGame, Inc. in March 2011. China CGame, Inc. was founded in 1992 and is based in Changzhou, China.

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.