Head-To-Head Review: Zhihu (NYSE:ZH) & Uber Technologies (NYSE:UBER)

Uber Technologies (NYSE:UBER) and Zhihu (NYSE:ZH) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Uber Technologies and Zhihu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Uber Technologies	10.49%	33.46%	10.55%
Zhihu	-15.49%	-13.51%	-9.48%

Volatility & Risk

Uber Technologies has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Zhihu has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Uber Technologies and Zhihu, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uber Technologies	0	6	32	1	2.87
Zhihu	0	0	1	0	3.00

Uber Technologies presently has a consensus price target of $90.32, indicating a potential upside of 25.38%. Zhihu has a consensus price target of $5.40, indicating a potential upside of 61.19%. Given Zhihu’s stronger consensus rating and higher probable upside, analysts clearly believe Zhihu is more favorable than Uber Technologies.

Valuation & Earnings

This table compares Uber Technologies and Zhihu”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uber Technologies	$37.28 billion	4.07	$1.89 billion	$2.01	35.84
Zhihu	$591.40 million	0.57	-$118.82 million	($0.90)	-3.72

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

Insider and Institutional Ownership

80.2% of Uber Technologies shares are owned by institutional investors. Comparatively, 28.9% of Zhihu shares are owned by institutional investors. 3.8% of Uber Technologies shares are owned by insiders. Comparatively, 13.6% of Zhihu shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Uber Technologies beats Zhihu on 12 of the 15 factors compared between the two stocks.

About Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

About Zhihu

Zhihu Inc. operates an online content community in the People’s Republic of China. Its community allows people to seek inspiration, find solutions, make decisions, and have fun. The company offers technology, business support, and consulting services; information transmission, software, and information technology services. It also offers information and marketing services; vocational training; and internet services, as well as holds audio-visual permit. Zhihu Inc. was founded in 2010 and is headquartered in Beijing, the People’s Republic of China.