Head to Head Analysis: ZKH Group (NYSE:ZKH) & Autohome (NYSE:ATHM)

ZKH Group (NYSE:ZKHGet Free Report) and Autohome (NYSE:ATHMGet Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

9.5% of ZKH Group shares are owned by institutional investors. Comparatively, 63.1% of Autohome shares are owned by institutional investors. 5.7% of Autohome shares are owned by 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.

Profitability

This table compares ZKH Group and Autohome’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ZKH Group -1.54% -4.67% -2.20%
Autohome 21.43% 5.94% 4.75%

Volatility and Risk

ZKH Group has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Autohome has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Earnings & Valuation

This table compares ZKH Group and Autohome”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ZKH Group $1.29 billion 0.37 -$19.44 million ($0.13) -23.08
Autohome $922.63 million 2.42 $225.19 million $1.64 11.84

Autohome has lower revenue, but higher earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Autohome, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for ZKH Group and Autohome, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ZKH Group 1 0 0 0 1.00
Autohome 1 3 0 0 1.75

Autohome has a consensus price target of $28.00, suggesting a potential upside of 44.18%. Given Autohome’s stronger consensus rating and higher possible upside, analysts plainly believe Autohome is more favorable than ZKH Group.

Summary

Autohome beats ZKH Group on 11 of the 13 factors compared between the two stocks.

About ZKH Group

(Get Free Report)

ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People’s Republic of China. The company provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. It also engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is based in Shanghai, the People’s Republic of China.

About Autohome

(Get Free Report)

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company offers Autohome Mall, an online transaction platform; and online bidding platform for used automobiles, as well as collects commissions for facilitating transactions of auto-financing and insurance products on its platform. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was incorporated in 2008 and is headquartered in Beijing, the People’s Republic of China.

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