Financial Analysis: Zhihu (ZH) and Its Peers

Zhihu (NYSE:ZH – Get Rating) is one of 225 public companies in the “Business services,…


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Zhihu (NYSE:ZHGet Rating) is one of 225 public companies in the “Business services, not elsewhere classified” industry, but how does it weigh in compared to its competitors? We will compare Zhihu to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, profitability and valuation.

Insider & Institutional Ownership

16.6% of Zhihu shares are held by institutional investors. Comparatively, 59.0% of shares of all “Business services, not elsewhere classified” companies are held by institutional investors. 14.2% of shares of all “Business services, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Zhihu -43.80% -18.37% -14.91%
Zhihu Competitors -15.59% -19.62% -7.15%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Zhihu and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zhihu 1 1 5 0 2.57
Zhihu Competitors 1336 6740 12125 345 2.56

Zhihu presently has a consensus target price of $9.48, suggesting a potential upside of 270.44%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 38.41%. Given Zhihu’s stronger consensus rating and higher possible upside, analysts clearly believe Zhihu is more favorable than its competitors.

Earnings & Valuation

This table compares Zhihu and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zhihu $464.38 million -$203.82 million -3.28
Zhihu Competitors $3.21 billion $492.46 million -64,276.71

Zhihu’s competitors have higher revenue and earnings than Zhihu. Zhihu is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Zhihu competitors beat Zhihu on 7 of the 12 factors compared.

Zhihu Company Profile (Get Rating)

Zhihu Inc. operates an online content community platform in the People’s Republic of China. The company’s community allows people to seek inspiration, find solutions, make decisions, and have fun. It also offers technology, business support, and consulting services; information and marketing services; and Internet services. The company was founded in 2011 and is based in Beijing, China.



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