Contrasting Zhihu (NYSE:ZH) and Recruit (OTCMKTS:RCRUY)

Zhihu (NYSE:ZH) and Recruit (OTCMKTS:RCRUY) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Valuation and Earnings

This table compares Zhihu and Recruit”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhihu	$4.06 billion	0.08	-$118.82 million	($1.14)	-2.89
Recruit	N/A	N/A	N/A	N/A	N/A

Recruit has lower revenue, but higher earnings than Zhihu.

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Zhihu and Recruit, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhihu	0	0	1	0	3.00
Recruit	0	0	0	0	N/A

Zhihu presently has a consensus price target of $5.40, suggesting a potential upside of 63.64%. Given Zhihu’s higher possible upside, equities analysts clearly believe Zhihu is more favorable than Recruit.

Institutional and Insider Ownership

28.9% of Zhihu shares are held by institutional investors. 13.6% of Zhihu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Zhihu beats Recruit on 5 of the 8 factors compared between the two stocks.

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.

About Recruit

Recruit Holdings Co., Ltd. provides HR technology and business solutions that transforms the world of work. It operates through three segments: HR Technology, Matching & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Matching & Solutions segment offers marketing solutions that provide matching platforms for businesses in various industries, including housing and real estate, beauty, bridal, travel, dining, and others, as well as SaaS solutions, which are business and management support tools for small and medium-sized companies. It also provides HR solutions that support business clients' recruiting and hiring activities and individual users' job search activities through its job advertising services and placement services. The Staffing segment provides temporary staffing services in Japan, Europe, the United States, and Australia. Recruit Holdings Co., Ltd. operates in more than 60 countries. The company was formerly known as Recruit Co., Ltd. and changed its name to Recruit Holdings Co., Ltd. in October 2012. Recruit Holdings Co., Ltd. was founded in 1960 and is headquartered in Tokyo, Japan.