Financial Analysis: KANZHUN (NASDAQ:BZ) & Parsons (NYSE:PSN)

Parsons (NYSE:PSN) and KANZHUN (NASDAQ:BZ) are both mid-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Parsons and KANZHUN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parsons	2	3	11	0	2.56
KANZHUN	0	3	2	0	2.40

Parsons presently has a consensus price target of $64.08, indicating a potential upside of 48.57%. KANZHUN has a consensus price target of $19.33, indicating a potential upside of 37.02%. Given Parsons’ stronger consensus rating and higher probable upside, analysts plainly believe Parsons is more favorable than KANZHUN.

Profitability

This table compares Parsons and KANZHUN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parsons	2.50%	8.10%	3.75%
KANZHUN	53.16%	15.03%	12.02%

Valuation & Earnings

This table compares Parsons and KANZHUN”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parsons	$6.36 billion	0.72	$241.14 million	$1.45	29.75
KANZHUN	$1.18 billion	4.93	$391.15 million	$1.42	9.94

KANZHUN has lower revenue, but higher earnings than Parsons. KANZHUN is trading at a lower price-to-earnings ratio than Parsons, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Parsons has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, KANZHUN has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Institutional and Insider Ownership

98.0% of Parsons shares are owned by institutional investors. Comparatively, 60.7% of KANZHUN shares are owned by institutional investors. 1.3% of Parsons shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Parsons beats KANZHUN on 9 of the 14 factors compared between the two stocks.

About Parsons

Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment provides critical technologies, such as cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems; biometrics and bio surveillance solutions to U.S. Department of Defense, including military services; Missile Defense Agency, the Department of Energy; the Department of State; the Department of Homeland Security, and the Federal Aviation Administration. The Critical Infrastructure segment provides management, design, and engineering services, as well as offers leveraging sensor solutions. This segment develops digital solutions for next generation aviation, rail and transit, bridges, roads, and highways; and provides water and wastewater treatment systems; AI/ML, and digital twin and cyber systems integration services; planning, engineering, and management services for infrastructure, including bridges and tunnels, roads and highways, water and wastewater, and dams and reservoirs. Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.

About KANZHUN

Kanzhun Limited, together with its subsidiaries, provides online recruitment services in the People's Republic of China. The company offers its recruitment services through a mobile app under the BOSS Zhipin brand name. Its services allow enterprise customers to access and interact with job seekers and manage their recruitment process. The company also provides management consultancy and technical services. Kanzhun Limited was founded in 2013 and is headquartered in Beijing, the People's Republic of China.