Zhihu (NYSE:ZH) vs. CreditRiskMonitor.com (OTCMKTS:CRMZ) Head-To-Head Analysis

CreditRiskMonitor.com (OTCMKTS:CRMZ) and Zhihu (NYSE:ZH) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Institutional & Insider Ownership

28.9% of Zhihu shares are held by institutional investors. 56.2% of CreditRiskMonitor.com shares are held by insiders. Comparatively, 13.6% of Zhihu shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CreditRiskMonitor.com	0	0	0	0	0.00
Zhihu	1	0	0	0	1.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CreditRiskMonitor.com	7.47%	13.03%	5.92%
Zhihu	3.41%	2.42%	1.78%

Volatility and Risk

CreditRiskMonitor.com has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Zhihu has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Earnings & Valuation

This table compares CreditRiskMonitor.com and Zhihu”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CreditRiskMonitor.com	$19.81 million	1.37	$1.67 million	$0.13	19.38
Zhihu	$493.05 million	0.64	-$23.54 million	$0.16	22.29

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

About CreditRiskMonitor.com

CreditRiskMonitor.com, Inc. engages in the provision of interactive business-to-business software-as-a-service (Saas) subscription products for corporate credit and procurement professionals in the United States. The company's products include CreditRiskMonitor product provides subscribers with unlimited usage and coverage of public and private companies, featuring multi-period spreads of financial reports and ratio analysis, credit risk scores, payment-behavior scores, trend reports, peer analysis, and credit limit recommendations, as well as up-to-date financial news screened specifically for materiality in credit evaluation; and SupplyChainMonitor, creates a risk management solution built specifically for procurement, supply chain, sourcing, and finance personnel involved in the supplier lifecycle, risk assessment, and ongoing risk monitoring. It also offers add-on subscription services, including Credit Limit Service product, available on the CreditRiskMonitor platform product, helps subscribers manage credit line limits for their customers, in light of changes in the customers' financial strength; Financial Statement Processing, and Confidential Financial Statement Tool products, provides subscribers a flexible option to help ease their process in the data entry and standardization of private company financial statements, as well as provides private company FRISK scores; and Confidential Financial Statement Portal, allows subscribers to invite their private company counterparties to enter or upload confidential financial statements to standardize and score to provide private company FRISK scores. The company was incorporated in 1977 and is based in Valley Cottage, New York. CreditRiskMonitor.com, Inc. operates as a subsidiary of Flum Partners.

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.