Analyzing Zhihu (ZH) & The Competition

Zhihu (NYSE:ZH) is one of 192 public companies in the “Interactive Media & Services” industry, but how does it contrast to its rivals? We will compare Zhihu to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

28.9% of Zhihu shares are owned by institutional investors. Comparatively, 41.2% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 13.6% of Zhihu shares are owned by company insiders. Comparatively, 24.0% of shares of all “Interactive Media & Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Zhihu	$393.10 million	-$27.58 million	-5.04
Zhihu Competitors	$13.72 billion	$3.48 billion	20.56

Zhihu’s rivals have higher revenue and earnings than Zhihu. Zhihu 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

Zhihu has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Zhihu’s rivals have a beta of 1.88, suggesting that their average stock price is 88% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zhihu	-11.33%	-7.71%	-5.75%
Zhihu Competitors	-349.38%	-23.09%	4.03%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Zhihu and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhihu	1	0	0	0	1.00
Zhihu Competitors	1438	6007	11542	441	2.57

As a group, “Interactive Media & Services” companies have a potential upside of 33.37%. Given Zhihu’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Zhihu has less favorable growth aspects than its rivals.

Summary

Zhihu rivals beat Zhihu on 11 of the 13 factors compared.

Zhihu Company Profile

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.