Zhihu (NYSE:ZH) vs. Recruit (OTCMKTS:RCRUY) Head-To-Head Comparison

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

Institutional & Insider Ownership

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

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

Earnings & Valuation

This table compares Zhihu and Recruit”s gross revenue, earnings per share 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Zhihu and Recruit, as provided 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 currently has a consensus price target of $5.40, indicating a potential upside of 63.64%. Given Zhihu’s higher possible upside, analysts clearly believe Zhihu is more favorable than Recruit.

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.