Critical Analysis: KANZHUN (NASDAQ:BZ) & Docusign (NASDAQ:DOCU)

KANZHUN (NASDAQ:BZ) and Docusign (NASDAQ:DOCU) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Valuation & Earnings

This table compares KANZHUN and Docusign”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KANZHUN	$1.01 billion	9.11	$217.10 million	$0.67	33.07
Docusign	$2.98 billion	4.94	$1.07 billion	$1.33	54.99

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KANZHUN	27.74%	13.86%	10.84%
Docusign	9.08%	14.01%	7.14%

Risk & Volatility

KANZHUN has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Docusign has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Institutional & Insider Ownership

60.7% of KANZHUN shares are owned by institutional investors. Comparatively, 77.6% of Docusign shares are owned by institutional investors. 5.6% of KANZHUN shares are owned by insiders. Comparatively, 1.0% of Docusign shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for KANZHUN and Docusign, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KANZHUN	0	1	7	2	3.10
Docusign	0	15	4	1	2.30

KANZHUN presently has a consensus target price of $21.17, suggesting a potential downside of 4.48%. Docusign has a consensus target price of $94.14, suggesting a potential upside of 28.72%. Given Docusign’s higher probable upside, analysts plainly believe Docusign is more favorable than KANZHUN.

Summary

Docusign beats KANZHUN on 8 of the 15 factors compared between the two stocks.

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.

About Docusign

DocuSign, Inc. provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Monitor that uses advanced analytics to track DocuSign eSignature web, mobile, and API account; Notary which enables notaries public to conduct remote online notarization transactions; and Web Forms, a web forms that quickly draft agreements using pre-populated data from completed forms or external systems via APIs. In addition, the company offers Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally. Signature and CLM are FedRAMP, an authorized version of DocuSign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct and partner-assisted sales, and digital self-service purchasing. DocuSign, Inc. was incorporated in 2003 and is headquartered in San Francisco, California.