Pazoo (OTCMKTS:PZOO) vs. Zhihu (NYSE:ZH) Critical Analysis

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

Volatility & Risk

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

Profitability

This table compares Zhihu and Pazoo’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%
Pazoo	N/A	N/A	N/A

Institutional and Insider Ownership

28.9% of Zhihu shares are owned by institutional investors. 13.6% of Zhihu shares are owned by company insiders. Comparatively, 6.2% of Pazoo shares are owned 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.

Analyst Recommendations

This is a breakdown of current ratings for Zhihu and Pazoo, as reported by MarketBeat.

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

Zhihu presently has a consensus target price of $5.40, indicating a potential upside of 70.35%. Given Zhihu’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Zhihu is more favorable than Pazoo.

Valuation and Earnings

This table compares Zhihu and Pazoo”s top-line 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	($0.90)	-3.52
Pazoo	N/A	N/A	N/A	N/A	N/A

Pazoo has lower revenue, but higher earnings than Zhihu.

Summary

Zhihu beats Pazoo on 7 of the 10 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 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.