Critical Comparison: Zillow Group (NASDAQ:ZG) versus 36Kr (NASDAQ:KRKR)

36Kr (NASDAQ:KRKR) and Zillow Group (NASDAQ:ZG) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares 36Kr and Zillow Group’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
Zillow Group	1.96%	2.32%	1.97%

Volatility and Risk

36Kr has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Zillow Group has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Earnings & Valuation

This table compares 36Kr and Zillow Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
36Kr	$32.59 million	0.17	$1.55 million	($2.40)	-1.17
Zillow Group	$2.58 billion	2.77	$23.00 million	$0.22	144.68

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

Insider & Institutional Ownership

0.1% of 36Kr shares are held by institutional investors. Comparatively, 20.3% of Zillow Group shares are held by institutional investors. 39.4% of 36Kr shares are held by company insiders. Comparatively, 29.9% of Zillow Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for 36Kr and Zillow Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
36Kr	1	0	0	0	1.00
Zillow Group	1	12	10	0	2.39

Zillow Group has a consensus price target of $50.33, suggesting a potential upside of 58.13%. Given Zillow Group’s stronger consensus rating and higher possible upside, analysts clearly believe Zillow Group is more favorable than 36Kr.

Summary

Zillow Group beats 36Kr on 13 of the 14 factors compared between the two stocks.

About 36Kr

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 Zillow Group

Zillow Group, Inc. operates real estate brands in mobile applications and Websites in the United States. The company offers premier agent and rentals marketplaces, new construction marketplaces, advertising, display advertising, and business technology solutions, as well as dotloop and floor plans. It also provides mortgage originations and the sale of mortgages, and advertising to mortgage lenders and other mortgage professionals; and title and escrow services. In addition, the company's brand portfolio includes Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, StreetEasy, HotPads, and Out East; and a suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Spruce, and Follow Up Boss. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.