Head-To-Head Review: Rakuten (OTCMKTS:RKUNY) & ZKH Group (NYSE:ZKH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZKH Group	-1.54%	-4.67%	-2.20%
Rakuten	-7.13%	-14.73%	-0.66%

Earnings & Valuation

This table compares ZKH Group and Rakuten”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZKH Group	$8.99 billion	0.05	-$19.44 million	($0.13)	-23.04
Rakuten	$16.70 billion	0.64	-$1.19 billion	($0.54)	-9.15

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

Insider and Institutional Ownership

9.5% of ZKH Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ZKH Group and Rakuten, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZKH Group	1	0	0	0	1.00
Rakuten	0	1	0	2	3.33

Volatility & Risk

ZKH Group has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Rakuten has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Summary

Rakuten beats ZKH Group on 7 of the 12 factors compared between the two stocks.

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.

About Rakuten

Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.