Analyzing 36Kr (NASDAQ:KRKR) and Zhihu (NYSE:ZH)

36Kr (NASDAQ:KRKR) and Zhihu (NYSE:ZH) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for 36Kr and Zhihu, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
36Kr	1	0	0	0	1.00
Zhihu	1	0	0	0	1.00

Risk & Volatility

36Kr has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Zhihu has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Valuation and Earnings

This table compares 36Kr and Zhihu”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
36Kr	$32.59 million	0.18	$1.55 million	($2.40)	-1.23
Zhihu	$393.10 million	0.75	-$27.58 million	($0.55)	-6.23

36Kr has higher earnings, but lower revenue than Zhihu. Zhihu is trading at a lower price-to-earnings ratio than 36Kr, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.1% of 36Kr shares are held by institutional investors. Comparatively, 28.9% of Zhihu shares are held by institutional investors. 39.4% of 36Kr shares are held by company insiders. Comparatively, 13.6% of Zhihu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares 36Kr and Zhihu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
36Kr	N/A	N/A	N/A
Zhihu	-11.33%	-7.71%	-5.75%

Summary

36Kr beats Zhihu on 7 of the 11 factors compared between the two stocks.

About 36Kr

36Kr Holdings Inc. provides content and business services in the People's Republic of China. It creates and distributes various content, including insightful reports on companies and industries, timely market updates, thought-provoking editorials, and commentaries, as well as original video and audio content in various industries, such as technology, consumer, retail, healthcare, media and entertainment, and enterprise services. The company's business services include online advertising services; enterprise value-added services, such as integrated marketing, advertisement agent, online/offline event, and consulting services; and subscription services to individuals, institutional investors, and enterprises. 36Kr Holdings Inc. was founded in 2010 and is headquartered in Beijing, the People's Republic of China.

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.