ZKH Group (NYSE:ZKH – Get Free Report) and Tractor Supply (NASDAQ:TSCO – Get Free Report) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.
Valuation and Earnings
This table compares ZKH Group and Tractor Supply’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
ZKH Group | $8.72 billion | 0.18 | -$42.86 million | N/A | N/A |
Tractor Supply | $14.56 billion | 2.03 | $1.11 billion | $10.27 | 26.67 |
Tractor Supply has higher revenue and earnings than ZKH Group.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
ZKH Group | 0 | 0 | 1 | 0 | 3.00 |
Tractor Supply | 2 | 8 | 14 | 0 | 2.50 |
ZKH Group presently has a consensus target price of $21.30, indicating a potential upside of 71.36%. Tractor Supply has a consensus target price of $248.17, indicating a potential downside of 9.40%. Given ZKH Group’s stronger consensus rating and higher probable upside, research analysts plainly believe ZKH Group is more favorable than Tractor Supply.
Institutional and Insider Ownership
9.5% of ZKH Group shares are held by institutional investors. Comparatively, 98.7% of Tractor Supply shares are held by institutional investors. 0.2% of Tractor Supply shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares ZKH Group and Tractor Supply’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
ZKH Group | N/A | N/A | N/A |
Tractor Supply | 7.66% | 52.99% | 12.14% |
Summary
Tractor Supply beats ZKH Group on 9 of the 11 factors compared between the two stocks.
About ZKH Group
ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People's Republic of China. The company also provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. Further, it engages in the production and sale of intelligent warehousing equipment. The company was founded in 1998 and is based in Shanghai, the People's Republic of China.
About Tractor Supply
Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.
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