Head-To-Head Comparison: Clearwater Analytics (NYSE:CWAN) & KANZHUN (NASDAQ:BZ)

Clearwater Analytics (NYSE:CWAN) and KANZHUN (NASDAQ:BZ) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Insider & Institutional Ownership

50.1% of Clearwater Analytics shares are owned by institutional investors. Comparatively, 60.7% of KANZHUN shares are owned by institutional investors. 3.3% of Clearwater Analytics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Clearwater Analytics and KANZHUN”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Analytics	$451.80 million	13.37	$424.38 million	$1.59	12.99
KANZHUN	$1.01 billion	9.62	$217.10 million	$0.67	35.25

Clearwater Analytics has higher earnings, but lower revenue than KANZHUN. Clearwater Analytics is trading at a lower price-to-earnings ratio than KANZHUN, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Clearwater Analytics and KANZHUN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Analytics	0	0	9	0	3.00
KANZHUN	0	2	5	1	2.88

Clearwater Analytics presently has a consensus target price of $32.67, indicating a potential upside of 58.14%. KANZHUN has a consensus target price of $21.17, indicating a potential downside of 10.39%. Given Clearwater Analytics’ stronger consensus rating and higher possible upside, research analysts clearly believe Clearwater Analytics is more favorable than KANZHUN.

Risk and Volatility

Clearwater Analytics has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, KANZHUN has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares Clearwater Analytics and KANZHUN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearwater Analytics	73.74%	3.23%	2.44%
KANZHUN	27.74%	13.83%	10.81%

Summary

Clearwater Analytics beats KANZHUN on 9 of the 15 factors compared between the two stocks.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally. It offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. The company’s Clearwater Prism SaaS-based data and reporting platform for investment data delivers a range of product modules, including Prism reporting and statements, Prism connectors, Prism data ops, and Prism managed services. It also provides Clearwater JUMP that provides a modular front, middle and back office solution to investment managers, private banks, and insurer, as well as portfolio management and order management, unit-linked funds, tri-partite templates, and full trade life cycle solutions. In addition, the company offers Clearwater LPx, a full-service solution for private funds that delivers complete, timely, accurate, and consumable data for limited partnerships; and Clearwater MLx, a comprehensive mortgage loan investment solution that provides investors to drive growth and make informed decisions, oversight, and reporting capabilities for mortgage loan investments, as well as enhances risk reporting, servicer tracking, oversight, and accounting capabilities. The company was founded in 2004 and is headquartered in Boise, Idaho.

About KANZHUN

Kanzhun Limited, together with its subsidiaries, provides online recruitment services in the People's Republic of China. The company offers its recruitment services through a mobile app under the BOSS Zhipin brand name. Its services allow enterprise customers to access and interact with job seekers and manage their recruitment process. The company also provides management consultancy and technical services. Kanzhun Limited was founded in 2013 and is headquartered in Beijing, the People's Republic of China.