Critical Analysis: Kanzhun (NASDAQ:BZ) vs. GigaMedia (NASDAQ:GIGM)

Kanzhun (NASDAQ:BZ) and GigaMedia (NASDAQ:GIGM) 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, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Volatility and Risk

Kanzhun has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Valuation & Earnings

This table compares Kanzhun and GigaMedia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kanzhun	$7.11 billion	1.00	$154.82 million	$0.45	41.49
GigaMedia	$3.09 million	5.68	-$3.40 million	($0.36)	-4.40

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kanzhun	20.65%	10.31%	7.87%
GigaMedia	-126.94%	-9.19%	-8.64%

Institutional & Insider Ownership

60.7% of Kanzhun shares are owned by institutional investors. Comparatively, 13.5% of GigaMedia shares are owned by institutional investors. 5.6% of Kanzhun shares are owned by insiders. Comparatively, 1.0% of GigaMedia shares are owned 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Kanzhun and GigaMedia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kanzhun	0	4	6	0	2.60
GigaMedia	0	0	0	0	0.00

Kanzhun presently has a consensus target price of $21.00, indicating a potential upside of 12.48%. Given Kanzhun’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kanzhun is more favorable than GigaMedia.

Summary

Kanzhun beats GigaMedia 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 GigaMedia

GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.