ZKH Group (NYSE:ZKH – Get Free Report) and Baidu (NASDAQ:BIDU – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Earnings and Valuation
This table compares ZKH Group and Baidu”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZKH Group | $1.20 billion | 0.39 | -$37.28 million | ($0.20) | -14.40 |
| Baidu | $18.24 billion | 2.56 | $3.26 billion | $10.85 | 12.48 |
Profitability
This table compares ZKH Group and Baidu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZKH Group | -2.65% | -7.57% | -3.59% |
| Baidu | 21.00% | 7.35% | 4.66% |
Risk and Volatility
ZKH Group has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Baidu has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.
Institutional and Insider Ownership
9.5% of ZKH Group shares are owned by institutional investors. 16.7% of Baidu shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for ZKH Group and Baidu, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZKH Group | 0 | 0 | 1 | 0 | 3.00 |
| Baidu | 1 | 9 | 8 | 1 | 2.47 |
ZKH Group currently has a consensus target price of $4.00, indicating a potential upside of 38.89%. Baidu has a consensus target price of $122.42, indicating a potential downside of 9.59%. Given ZKH Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe ZKH Group is more favorable than Baidu.
Summary
Baidu beats ZKH Group on 11 of the 15 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 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.
About Baidu
Baidu, Inc. engages in the provision of internet search services in China. It operates through two segments: Baidu Core and iQIYI. The company offers Baidu App to access search, feed, and other services using mobile devices; Baidu Search to access its search and other services; Baidu Feed that provides users with personalized timeline based on their demographics and interests; Baidu Health that helps users to find the doctor and hospital for healthcare needs; and Haokan, a short video app. It also provides Baidu Knows, an online community where users can ask questions to other users; Baidu Wiki; Baidu Experience; Baidu Post; ERNIE Bot, conversational AI bot; Baidu Wenku; Baidu Maps, a voice-enabled mobile app that provides travel-related services; Baidu Drive; Baijiahao; and DuerOS, a smart assistant platform. In addition, it offers online marketing services, which include pay for performance, an auction-based services that allow customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services; other marketing services that include display-based marketing services and other online marketing services based on performance criteria other than cost per click; mobile ecosystem, a portfolio of apps, including Baidu App, Haokan, and Baidu Post; various cloud services and solutions, such as platform as a service, software as a service, and infrastructure as a service; self-driving services, including maps, automated valet parking, navigation pilot, electric vehicles, and robotaxi fleets, as well as Xiaodu smart devices. Further, the company provides iQIYI, an online entertainment service, including original and licensed content; other video content and membership; and online advertising services. It has strategic partnership with Zhejiang Geely Holding Group. The company was formerly known as Baidu.com, Inc. Baidu, Inc. was incorporated in 2000 and is headquartered in Beijing, China.
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