Analyzing Kanzhun (NASDAQ:BZ) & Grom Social Enterprises (NASDAQ:GROM)

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

Profitability

This table compares Grom Social Enterprises and Kanzhun’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	-386.01%	-89.97%	-70.42%
Kanzhun	20.55%	9.73%	7.45%

Volatility and Risk

Grom Social Enterprises has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Kanzhun has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Institutional and Insider Ownership

15.9% of Grom Social Enterprises shares are held by institutional investors. Comparatively, 60.7% of Kanzhun shares are held by institutional investors. 0.0% of Grom Social Enterprises shares are held by insiders. Comparatively, 5.6% of Kanzhun shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Grom Social Enterprises and Kanzhun’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grom Social Enterprises	$4.04 million	1.01	-$12.53 million	($11.67)	-0.04
Kanzhun	$838.33 million	8.77	$154.82 million	$0.39	50.03

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

Analyst Ratings

This is a summary of current ratings and target prices for Grom Social Enterprises and Kanzhun, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	N/A
Kanzhun	0	1	8	0	2.89

Kanzhun has a consensus price target of $22.67, indicating a potential upside of 16.18%. Given Kanzhun’s higher probable upside, analysts clearly believe Kanzhun is more favorable than Grom Social Enterprises.

Summary

Kanzhun beats Grom Social Enterprises on 12 of the 13 factors compared between the two stocks.

About Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company in the United States and Philippines. It operates through three segments: Animation, Original Content, and Social and Technology. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.

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.