Critical Analysis: Pazoo (OTCMKTS:PZOO) and Zhihu (NYSE:ZH)

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

Insider and Institutional Ownership

28.9% of Zhihu shares are held by institutional investors. 6.2% of Pazoo shares are held by insiders. Comparatively, 13.6% of Zhihu shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Pazoo and Zhihu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pazoo	0	0	0	0	0.00
Zhihu	0	0	1	0	3.00

Zhihu has a consensus price target of $5.40, indicating a potential upside of 70.35%. Given Zhihu’s stronger consensus rating and higher possible upside, analysts plainly believe Zhihu is more favorable than Pazoo.

Risk and Volatility

Pazoo has a beta of -0.48, meaning that its stock price is 148% less 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pazoo	N/A	N/A	N/A
Zhihu	-15.49%	-13.51%	-9.48%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pazoo	N/A	N/A	N/A	N/A	N/A
Zhihu	$4.06 billion	0.08	-$118.82 million	($0.90)	-3.52

Pazoo has higher earnings, but lower revenue than Zhihu.

Summary

Zhihu beats Pazoo on 7 of the 10 factors compared between the two stocks.

About Pazoo

Pazoo, Inc. operates as a health and wellness company. It offers laboratory testing services for marijuana. Pazoo, Inc.was formerly known as IUCSS, Inc. and changed its name to Pazoo, Inc. in May 2011. The company was founded in 2010 and is headquartered in East Hanover, New Jersey.

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.