Critical Survey: ZKH Group (ZKH) vs. Its Rivals

ZKH Group (NYSE:ZKH) is one of 157 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it contrast to its rivals? We will compare ZKH Group to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares ZKH Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZKH Group	-0.02%	-0.06%	-0.03%
ZKH Group Competitors	1.10%	-33.74%	3.54%

Institutional & Insider Ownership

9.5% of ZKH Group shares are held by institutional investors. Comparatively, 50.5% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 17.3% of shares of all “Trading Companies & Distributors” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ZKH Group and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ZKH Group	$1.29 billion	-$19.44 million	-126.90
ZKH Group Competitors	$6.62 billion	$363.16 million	34.04

ZKH Group’s rivals have higher revenue and earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

ZKH Group has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, ZKH Group’s rivals have a beta of 1.32, indicating that their average share price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ZKH Group and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZKH Group	1	0	0	0	1.00
ZKH Group Competitors	1471	4926	6747	242	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 8.45%. Given ZKH Group’s rivals stronger consensus rating and higher possible upside, analysts clearly believe ZKH Group has less favorable growth aspects than its rivals.

Summary

ZKH Group rivals beat ZKH Group on 12 of the 13 factors compared.

ZKH Group Company Profile

ZKH Group Limited operates a digital procurement platform in China focused on maintenance, repair and operations (MRO) products. Through its ZKH platform, the company connects business customers with suppliers and supports the sourcing of industrial supplies. Its product offerings include tools, electrical and mechanical components, safety supplies, fasteners and other products used in industrial and commercial operations. The company also provides procurement, warehousing, fulfillment and supply-chain services designed to help customers manage purchasing and deliveries.