Head to Head Comparison: Angi (NASDAQ:ANGI) and Zhihu (NYSE:ZH)

Angi (NASDAQ:ANGI) and Zhihu (NYSE:ZH) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Insider & Institutional Ownership

12.8% of Angi shares are owned by institutional investors. Comparatively, 28.9% of Zhihu shares are owned by institutional investors. 1.7% of Angi shares are owned by insiders. Comparatively, 13.6% of Zhihu 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.

Analyst Ratings

This is a breakdown of current ratings for Angi and Zhihu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angi	0	7	2	1	2.40
Zhihu	0	0	1	0	3.00

Angi presently has a consensus price target of $22.07, suggesting a potential upside of 24.56%. Zhihu has a consensus price target of $4.70, suggesting a potential downside of 2.14%. Given Angi’s higher probable upside, equities analysts clearly believe Angi is more favorable than Zhihu.

Risk and Volatility

Angi has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Zhihu has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Angi	5.50%	5.73%	3.29%
Zhihu	4.34%	3.24%	2.36%

Valuation & Earnings

This table compares Angi and Zhihu”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angi	$1.19 billion	0.66	$36.00 million	$1.23	14.41
Zhihu	$493.05 million	0.85	-$23.54 million	$0.22	21.83

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

Summary

Angi beats Zhihu on 10 of the 15 factors compared between the two stocks.

About Angi

Angi Inc. connects home service professionals with consumers in the United States and internationally. The company operates through three segments: Ads and Leads, Services, and International. It provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, matches consumers with independently established home services professionals. The company's Ads and Leads segment connects consumers with service professionals for local services through nationwide network of service professionals in various service categories; provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services; and sells term-based website, mobile, and magazine advertising to certified service professionals, as well as services and tools, including quoting, invoicing, and payment services. This segment provides consumers access to online True Cost Guide, which provides project cost information for various project types, as well as a library of home services-related content. Its Services segment offers a pre-priced offering, pursuant to which consumers can request services through Angi and Handy branded platforms and pay for such services on the applicable platform directly; and provides professionals with access to a pool of consumers seeking service professionals and must validate their home services experience, as well as attest to holding the requisite license(s) and maintain an acceptable rating to remain on Services platforms. The company's International segment operates Travaux, MyBuilder, MyHammer, Werkspo, and Homestars home services marketplaces. The company was formerly known as ANGI Homeservices Inc. and changed its name to Angi Inc. in March 2021. The company was incorporated in 2017 and is headquartered in Denver, Colorado. Angi Inc. operates as a subsidiary of IAC Inc.

About Zhihu

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.