Zhihu (ZH) and Its Peers Financial Review

Zhihu (NYSE:ZHGet Rating) is one of 224 public companies in the “Business services, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare Zhihu to related companies based on the strength of its analyst recommendations, risk, institutional ownership, valuation, earnings, dividends and profitability.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Zhihu $464.38 million -$203.82 million -2.76
Zhihu Competitors $3.23 billion $495.63 million -65,589.44

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

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 -43.80% -18.37% -14.91%
Zhihu Competitors -15.22% -19.32% -6.84%

Insider and Institutional Ownership

16.6% of Zhihu shares are owned by institutional investors. Comparatively, 60.0% of shares of all “Business services, not elsewhere classified” companies are owned by institutional investors. 14.7% of shares of all “Business services, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zhihu 1 1 5 0 2.57
Zhihu Competitors 1340 6750 12139 345 2.56

Zhihu presently has a consensus price target of $9.48, suggesting a potential upside of 341.09%. As a group, “Business services, not elsewhere classified” companies have a potential upside of 37.66%. Given Zhihu’s stronger consensus rating and higher possible upside, research analysts clearly believe Zhihu is more favorable than its rivals.

Summary

Zhihu rivals 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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