KANZHUN (NASDAQ:BZ) and Couchbase (NASDAQ:BASE) Critical Analysis

KANZHUN (NASDAQ:BZ) and Couchbase (NASDAQ:BASE) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KANZHUN	$7.76 billion	1.16	$217.10 million	$0.67	32.73
Couchbase	$220.64 million	6.14	-$74.65 million	($1.41)	-17.38

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

Institutional and Insider Ownership

60.7% of KANZHUN shares are held by institutional investors. Comparatively, 96.1% of Couchbase shares are held by institutional investors. 14.8% of Couchbase shares are held by 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for KANZHUN and Couchbase, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KANZHUN	0	1	7	2	3.10
Couchbase	2	14	2	0	2.00

KANZHUN presently has a consensus price target of $21.17, suggesting a potential downside of 3.48%. Couchbase has a consensus price target of $23.47, suggesting a potential downside of 4.26%. Given KANZHUN’s stronger consensus rating and higher probable upside, analysts plainly believe KANZHUN is more favorable than Couchbase.

Risk and Volatility

KANZHUN has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Couchbase has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KANZHUN	27.74%	13.86%	10.84%
Couchbase	-34.10%	-52.42%	-26.98%

Summary

KANZHUN beats Couchbase on 11 of the 15 factors compared between the two stocks.

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.

About Couchbase

Couchbase, Inc. provides cloud database platform for enterprise applications in the United States and internationally. Its database works in multiple configurations, ranging from cloud to multi- or hybrid-cloud to on-premise environments to the edge. The company offers Couchbase Capella, an automated and secure Database-as-a-Service that simplifies database management by deploying, managing, and operating Couchbase Server across cloud environments; and Couchbase Server, a multi-service NoSQL database, which provides SQL-compatible query language and SQL++ that allows for a various array of data manipulation functions. It also provides Couchbase Mobile, an embedded NoSQL database for mobile and edge devices that enables an always-on experience with high data availability, even without internet connectivity, as well as synchronization gateway that allows for secure data sync between mobile devices and the backend data store. The company sells its platform through direct sales force and an ecosystem of partners. It serves governments and organizations, as well as enterprises in various industries, including retail and e-commerce, travel and hospitality, financial services and insurance, software and technology, gaming, media and entertainment, and industrials. The company was formerly known as Membase, Inc. and changed its name to Couchbase, Inc. in February 2011. Couchbase, Inc. was incorporated in 2008 and is headquartered in Santa Clara, California.