Zhihu (NYSE:ZH – Get Rating ) and Future FinTech Group (NASDAQ:FTFT – Get Rating ) are both small-cap computers and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Institutional and insider ownership
20.3% of Zhihu shares are owned by institutional investors. In comparison, 6.3% of the shares in Future FinTech Group are owned by institutional investors. 4.3% of the shares in Future FinTech Group are owned by the company’s insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe that a stock is poised for long-term growth.
Valuation and earnings
This table compares Zhihu and Future FinTech Group’s revenue, earnings per share (EPS) and valuation.
| Gross income | Price/sales ratio | Net income | Earnings per share | Price/income ratio | |
| Zhihu | 464.38 million dollars | 1.92 | -$203.82 million | ($0.41) | -3.44 |
| The FinTech Group of the future | 25.05 million dollars | 1.23 | -$13.60 million | NOW | NOW |
Future FinTech Group has lower revenue but higher earnings than Zhihu.
Analyst recommendations
This is a summary of current ratings and price targets for Zhihu and Future FinTech Group, as reported by MarketBeat.
| Sell reviews | Hold assessments | Buy reviews | Strong buy ratings | Assessment points | |
| Zhihu | 0 | 2 | 2 | 0 | 2.50 |
| The FinTech Group of the future | 0 | 0 | 0 | 0 | NOW |
Zhihu currently has a consensus target price of $6.88, suggesting a potential upside of 387.59%. Given Zhihu’s higher probable upside, equities research analysts plainly believe Zhihu is more favorable than Future FinTech Group.
Profitability
This table compares Zhihu and Future FinTech Group’s net margins, return on equity and return on assets.
| Net margins | Return on equity | Return on assets | |
| Zhihu | -49.35% | -23.37% | -18.42% |
| The FinTech Group of the future | -54.39% | -17.26% | -15.36% |
Risk and volatility
Zhihu has a beta of 0.71, which suggests that its share price is 29% less volatile than the S&P 500. Comparatively, Future FinTech Group has a beta of 1.27, which suggests that its share price is 27% more volatile than the S&P 500.
Summary
Zhihu beats Future FinTech Group on 6 of the 11 factors compared between the two stocks.
About Zhihu
(Get rating)
Zhihu Inc. operates an online content community in the People’s Republic of China. The community allows people to seek inspiration, find solutions, make decisions and have fun. The company also provides technology, business support and consulting services; information transmission, software and information technology services; information and marketing services; vocational training; and internet services, as well as having audiovisual permission. The company was founded in 2010 and is headquartered in Beijing, People’s Republic of China.
About Future FinTech Group
(Get rating)
Future FinTech Group Inc., through its subsidiaries, operates online shopping platforms in the People’s Republic of China. It operates in four segments: Shared Mall Membership Fee, Fruit Related Products, Merchandise Sale and Others. The company operates Chain Cloud Mall (CCM), a real-name blockchain-based e-commerce platform that integrates blockchain and internet technologies; and NONOGIRL, a cross-border e-commerce platform. It also engages in supply chain financing and trading of coal and aluminum ingots; financial technology service; and cryptocurrency market data and information services businesses, as well as services related to the application and development of blockchain-based technology in financial technology. The company was formerly known as SkyPeople Fruit Juice, Inc. and changed its name to Future FinTech Group Inc. in June 2017. Future FinTech Group Inc. is headquartered in New York, New York.
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