Head-To-Head Analysis: Kanzhun (NASDAQ:BZ) versus Model N (NYSE:MODN)

Kanzhun (NASDAQ:BZ) and Model N (NYSE:MODN) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Volatility and Risk

Kanzhun has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Model N has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares Kanzhun and Model N’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kanzhun	20.55%	9.73%	7.45%
Model N	0.10%	6.94%	1.64%

Analyst Recommendations

This is a breakdown of recent ratings for Kanzhun and Model N, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kanzhun	0	1	8	0	2.89
Model N	0	9	1	0	2.10

Kanzhun presently has a consensus price target of $22.67, suggesting a potential upside of 13.33%. Model N has a consensus price target of $31.80, suggesting a potential upside of 6.14%. Given Kanzhun’s stronger consensus rating and higher probable upside, research analysts clearly believe Kanzhun is more favorable than Model N.

Institutional & Insider Ownership

60.7% of Kanzhun shares are owned by institutional investors. 5.6% of Kanzhun shares are owned by insiders. Comparatively, 2.6% of Model N shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Kanzhun and Model N’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kanzhun	$838.33 million	8.99	$154.82 million	$0.39	51.28
Model N	$249.46 million	4.73	-$33.92 million	$0.00	-2,996,000.00

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

Summary

Kanzhun beats Model N on 13 of the 14 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 Model N

Model N, Inc. provides cloud revenue management solutions for life sciences and high-tech companies in the United States and internationally. The company offers Global Pricing Management, which minimizes price erosion of products; Global Tender Management that enhances revenue by enabling segmentation and targeting, optimal bid pricing, and post-award tracking; Provider Management, which minimizes rebate overpayments; Payer Management that minimizes revenue leakage and noncompliance of complex contracts; Government Pricing, which optimizes revenue, and reduces the risk of fines and other penalties; and Medicaid that enhances compliance with regulatory requirements and payments of rebate claims on a timely basis and at correct rates for government Medicaid programs, as well as Validata, State Pricing Transparency Management, Advanced Membership Management, and Intelligence Cloud. It also provides Deal Management, which increases deal conversion and pricing consistency; Deal Intelligence that controls price concessions and determines ideal prices; Channel Management, which provides manufacturers a view of inventory, as well as evaluate price protection and stock rotation, and matching available inventory to quotes; Market Development Fund Management that allows companies to streamline their MDF process and reduce revenue leakage; Rebates Management, which centralizes control of rebate programs; and Channel Data Management that automates the process of collection, cleansing, validation, and standardization of channel partner data, such as POS, inventory, and claims, as well as Payment Management. In addition, the company offers implementation, application, business, strategic, and customer support services. It primarily serves large, mid-sized, and small life sciences and high tech manufactures worldwide through its direct sales force. The company was incorporated in 1999 and is headquartered in San Mateo, California.