Head to Head Analysis: Paymentus (NYSE:PAY) and Zhihu (NYSE:ZH)

Paymentus (NYSE:PAYGet Free Report) and Zhihu (NYSE:ZHGet Free Report) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares Paymentus and Zhihu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paymentus 4.43% 8.74% 7.47%
Zhihu -20.00% -16.32% -11.54%

Earnings & Valuation

This table compares Paymentus and Zhihu’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paymentus $651.04 million 3.72 $22.32 million $0.23 84.87
Zhihu $591.40 million 0.59 -$118.82 million ($1.14) -2.97

Paymentus has higher revenue and earnings than Zhihu. Zhihu is trading at a lower price-to-earnings ratio than Paymentus, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paymentus 0 7 1 0 2.13
Zhihu 0 0 0 0 N/A

Paymentus presently has a consensus target price of $19.06, suggesting a potential downside of 2.34%. Given Paymentus’ higher probable upside, research analysts plainly believe Paymentus is more favorable than Zhihu.

Institutional and Insider Ownership

12.6% of Paymentus shares are owned by institutional investors. Comparatively, 28.9% of Zhihu shares are owned by institutional investors. 87.8% of Paymentus shares are owned by company insiders. Comparatively, 13.6% of Zhihu shares are owned 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.

Volatility & Risk

Paymentus has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Zhihu has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Summary

Paymentus beats Zhihu on 12 of the 13 factors compared between the two stocks.

About Paymentus

(Get Free Report)

Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.

About Zhihu

(Get Free Report)

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.

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