Financial Analysis: Zhihu (NYSE:ZH) versus Pazoo (OTCMKTS:PZOO)

Pazoo (OTCMKTS:PZOO) and Zhihu (NYSE:ZH) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for Pazoo and Zhihu, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pazoo	0	0	0	0	0.00
Zhihu	0	0	1	0	3.00

Zhihu has a consensus price target of $5.40, suggesting a potential upside of 55.62%. Given Zhihu’s stronger consensus rating and higher possible upside, analysts clearly believe Zhihu is more favorable than Pazoo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pazoo	N/A	N/A	N/A
Zhihu	-15.49%	-13.51%	-9.48%

Institutional & Insider Ownership

28.9% of Zhihu shares are owned by institutional investors. 6.2% of Pazoo shares are owned by company insiders. Comparatively, 13.6% of Zhihu shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Pazoo has a beta of -0.48, suggesting that its stock price is 148% less volatile than the S&P 500. Comparatively, Zhihu has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pazoo	N/A	N/A	N/A	N/A	N/A
Zhihu	$591.40 million	0.59	-$118.82 million	($0.90)	-3.86

Pazoo has higher earnings, but lower revenue than Zhihu.

Summary

Zhihu beats Pazoo on 7 of the 10 factors compared between the two stocks.

About Pazoo

Pazoo, Inc. operates as a health and wellness company. It offers laboratory testing services for marijuana. Pazoo, Inc.was formerly known as IUCSS, Inc. and changed its name to Pazoo, Inc. in May 2011. The company was founded in 2010 and is headquartered in East Hanover, New Jersey.

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.