Head-To-Head Review: ZKH Group (NYSE:ZKH) & Alphabet (NASDAQ:GOOGL)

Alphabet (NASDAQ:GOOGL) and ZKH Group (NYSE:ZKH) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Risk and Volatility

Alphabet has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, ZKH Group has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Profitability

This table compares Alphabet and ZKH Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alphabet	54.77%	51.32%	35.42%
ZKH Group	-0.90%	-2.80%	-1.30%

Insider and Institutional Ownership

40.0% of Alphabet shares are held by institutional investors. Comparatively, 9.5% of ZKH Group shares are held by institutional investors. 11.6% of Alphabet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Alphabet and ZKH Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$402.84 billion	10.04	$132.17 billion	$19.91	16.76
ZKH Group	$1.29 billion	0.30	-$19.44 million	($0.08)	-36.91

Alphabet has higher revenue and earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Alphabet, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Alphabet and ZKH Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	4	44	6	3.04
ZKH Group	1	0	0	0	1.00

Alphabet presently has a consensus target price of $419.86, suggesting a potential upside of 25.82%. Given Alphabet’s stronger consensus rating and higher probable upside, equities analysts plainly believe Alphabet is more favorable than ZKH Group.

Summary

Alphabet beats ZKH Group on 15 of the 15 factors compared between the two stocks.

About Alphabet

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

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.