Head-To-Head Review: ZKH Group (NYSE:ZKH) & Data Storage (NASDAQ:DTST)

ZKH Group (NYSE:ZKH) and Data Storage (NASDAQ:DTST) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Profitability

This table compares ZKH Group and Data Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZKH Group	-0.90%	-2.80%	-1.30%
Data Storage	N/A	-3.76%	-3.32%

Analyst Recommendations

This is a breakdown of current ratings and price targets for ZKH Group and Data Storage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZKH Group	1	0	0	0	1.00
Data Storage	0	2	0	0	2.00

Insider & Institutional Ownership

9.5% of ZKH Group shares are held by institutional investors. Comparatively, 11.6% of Data Storage shares are held by institutional investors. 43.8% of Data Storage 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.

Earnings and Valuation

This table compares ZKH Group and Data Storage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZKH Group	$1.29 billion	0.29	-$19.44 million	($0.08)	-36.50
Data Storage	$1.38 million	5.66	$19.20 million	($0.33)	-10.12

Data Storage has lower revenue, but higher earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Data Storage, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ZKH Group has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Data Storage has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Summary

Data Storage beats ZKH Group on 8 of the 12 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 Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.