Critical Survey: ZKH Group (ZKH) versus Its Peers

ZKH Group (NYSE:ZKH) is one of 71 public companies in the “INTERNET SERVICES” industry, but how does it compare to its peers? We will compare ZKH Group to related companies based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for ZKH Group and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZKH Group	0	0	1	0	3.00
ZKH Group Competitors	563	2433	5631	221	2.62

ZKH Group presently has a consensus target price of $4.00, indicating a potential upside of 26.98%. As a group, “INTERNET SERVICES” companies have a potential upside of 14.54%. Given ZKH Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe ZKH Group is more favorable than its peers.

Valuation and Earnings

This table compares ZKH Group and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ZKH Group	$8.84 billion	-$37.28 million	-15.00
ZKH Group Competitors	$17.76 billion	$4.48 billion	10.85

ZKH Group’s peers have higher revenue and earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares ZKH Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZKH Group	-2.77%	-7.86%	-3.68%
ZKH Group Competitors	-16.13%	-15.99%	0.94%

Risk & Volatility

ZKH Group has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, ZKH Group’s peers have a beta of 2.63, meaning that their average share price is 163% more volatile than the S&P 500.

Insider and Institutional Ownership

9.5% of ZKH Group shares are held by institutional investors. Comparatively, 42.1% of shares of all “INTERNET SERVICES” companies are held by institutional investors. 23.3% of shares of all “INTERNET SERVICES” companies 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.

Summary

ZKH Group peers beat ZKH Group on 8 of the 13 factors compared.

ZKH Group Company Profile

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 provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. It also engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is based in Shanghai, the People’s Republic of China.