Critical Analysis: ZKH Group (ZKH) and Its Competitors

ZKH Group (NYSE:ZKH) is one of 157 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it compare to its rivals? We will compare ZKH Group to similar businesses based on the strength of its valuation, profitability, dividends, risk, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for ZKH Group and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZKH Group	1	0	0	0	1.00
ZKH Group Competitors	1465	4917	6712	240	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 12.94%. Given ZKH Group’s rivals stronger consensus rating and higher possible upside, analysts clearly believe ZKH Group has less favorable growth aspects than its rivals.

Volatility and Risk

ZKH Group has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, ZKH Group’s rivals have a beta of 1.32, indicating that their average share price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares ZKH Group and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ZKH Group	$1.29 billion	-$19.44 million	-128.00
ZKH Group Competitors	$6.67 billion	$363.16 million	33.54

ZKH Group’s rivals have higher revenue and earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares ZKH Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZKH Group	-0.02%	-0.06%	-0.03%
ZKH Group Competitors	1.07%	-34.34%	3.53%

Institutional and Insider Ownership

9.5% of ZKH Group shares are owned by institutional investors. Comparatively, 50.5% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 17.3% of shares of all “Trading Companies & Distributors” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

ZKH Group rivals beat ZKH Group on 12 of the 13 factors compared.

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.