Zhihu (NYSE:ZH – Get Free Report) and Genius Sports (NYSE:GENI – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Profitability
This table compares Zhihu and Genius Sports’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zhihu | 4.34% | 3.24% | 2.36% |
| Genius Sports | -13.94% | -11.48% | -8.76% |
Earnings and Valuation
This table compares Zhihu and Genius Sports”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zhihu | $493.05 million | 0.90 | -$23.54 million | $0.22 | 23.11 |
| Genius Sports | $510.89 million | 5.09 | -$63.04 million | ($0.31) | -38.95 |
Zhihu has higher earnings, but lower revenue than Genius Sports. Genius Sports is trading at a lower price-to-earnings ratio than Zhihu, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Zhihu has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Genius Sports has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Zhihu and Genius Sports, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zhihu | 0 | 0 | 1 | 0 | 3.00 |
| Genius Sports | 0 | 2 | 15 | 3 | 3.05 |
Zhihu currently has a consensus target price of $4.70, indicating a potential downside of 7.57%. Genius Sports has a consensus target price of $14.22, indicating a potential upside of 17.78%. Given Genius Sports’ stronger consensus rating and higher possible upside, analysts clearly believe Genius Sports is more favorable than Zhihu.
Insider & Institutional Ownership
28.9% of Zhihu shares are held by institutional investors. Comparatively, 81.9% of Genius Sports shares are held by institutional investors. 13.6% of Zhihu shares are held by insiders. Comparatively, 16.6% of Genius Sports shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Genius Sports beats Zhihu on 9 of the 15 factors compared between the two stocks.
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.
About Genius Sports
Genius Sports Limited engages in the development and sale of technology-led products and services to the sports, sports betting, and sports media industries. It offers technology infrastructure for the collection, integration, and distribution of live data of sports leagues; streaming solutions comprising technology, automatic production, and distribution for sports to commercialize video footage of their games; and end-to-end integrity services to sports leagues, such as full-time active monitoring technology, which uses mathematical algorithms to identify and flag suspicious betting activity in global betting markets, as well as a full suite of online and offline educational and consultancy services. The company also provides live sports data collection; pre-game and in-game odds feeds; risk management services, including customer profiling, monitoring of incoming bets, automated acceptance and rejection of bets, and limit setting; live streaming services; creation, delivery, and optimization of digital marketing campaigns, such as data-driven personalized ad creative; and fan engagement widgets for digital publishers that offer live game statistics and betting-related content. The company was founded in 2001 and is headquartered in London, the United Kingdom.
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