Head-To-Head Contrast: Aperam (OTCMKTS:APEMY) vs. ZK International Group (NASDAQ:ZKIN)

ZK International Group (NASDAQ:ZKIN) and Aperam (OTCMKTS:APEMY) are both basic materials 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.

Analyst Recommendations

This is a summary of recent recommendations for ZK International Group and Aperam, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZK International Group	1	0	0	0	1.00
Aperam	0	3	3	0	2.50

Profitability

This table compares ZK International Group and Aperam’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZK International Group	N/A	N/A	N/A
Aperam	0.49%	0.94%	0.52%

Insider and Institutional Ownership

0.3% of ZK International Group shares are held by institutional investors. 29.8% of ZK International Group shares are held by company insiders. Comparatively, 0.2% of Aperam 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.

Earnings and Valuation

This table compares ZK International Group and Aperam”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZK International Group	$71.24 million	0.16	-$3.98 million	N/A	N/A
Aperam	$6.88 billion	0.63	$10.18 million	$0.46	129.20

Aperam has higher revenue and earnings than ZK International Group.

Risk and Volatility

ZK International Group has a beta of 2.24, indicating that its stock price is 124% more volatile than the S&P 500. Comparatively, Aperam has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Summary

Aperam beats ZK International Group on 8 of the 11 factors compared between the two stocks.

About ZK International Group

ZK International Group Co., Ltd., through its subsidiaries, engages in the designing, producing, and selling double-press thin-walled stainless steel, carbon steel, and single-press tubes and fittings in the People's Republic of China. It offers carbon and stainless steel strips; carbon and stainless steel pipes; light gauge stainless steel pipes; pipe connections and fittings; and couplings, unions, adapters, caps, plug pipes, elbows, three-way fittings, tees, cross, side-inlet elbows, wyes, reducers, bushings, pipe fasteners, and pipe flanges. The company also provides stainless steel band, copper strip, valve, light industry machinery and equipment, and other stainless steel products. Its products are used in various applications, including water and gas transmission within urban infrastructural development, residential housing development, food and beverage production, oil and gas exploitation, and agricultural irrigation. The company also exports its products to Europe, Africa, and Southeast Asia. ZK International Group Co., Ltd. was incorporated in 2015 and is based in Wenzhou, the People's Republic of China.

About Aperam

Aperam S.A., together with its subsidiaries, produces and sells stainless and specialty steel products worldwide. It operates through four segments: Stainless & Electrical Steel; Services & Solutions; Alloys & Specialties; and Recycling & Renewables. The company offers a range of stainless steel products, including grain oriented and non-grain oriented electrical steel products, and specialty alloys. It is also involved in the management of direct sales of stainless steel products from production facilities; distribution of its products; and the provision of transformation services that include value added and customized steel solutions. In addition, the company designs, produces, and transforms various specialty alloys and other specific stainless steels in forms, such as bars, semis, cold-rolled strips, wire and wire rods, and plates in a range on grades. Further, it engages in the trading, processing, and recycling of raw materials, such as superalloys and titanium; provides Recyco, an electric arc furnace recycling facility that retrieves dust and sludge to recycle stainless steel raw materials and reduce waste; and produces wood and charcoal from cultivated eucalyptus forests. The company serves customers in aerospace, automotive, catering, construction, household appliances, electrical engineering, industrial processes, medical, and oil and gas industries. It distributes its products through a network of steel service centers, transformation facilities, and sales offices. The company was incorporated in 2010 and is headquartered in Luxembourg, Luxembourg.