Comparing Kanzhun (NASDAQ:BZ) and GigaMedia (NASDAQ:GIGM)

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaMedia	$3.09 million	6.31	-$3.40 million	($0.36)	-4.89
Kanzhun	$7.36 billion	1.01	$154.82 million	$0.49	39.71

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.

Insider and Institutional Ownership

13.5% of GigaMedia shares are owned by institutional investors. Comparatively, 60.7% of Kanzhun shares are owned by institutional investors. 1.0% of GigaMedia shares are owned by insiders. Comparatively, 5.6% of Kanzhun shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaMedia	0	0	0	0	0.00
Kanzhun	0	4	5	0	2.56

Kanzhun has a consensus price target of $21.71, suggesting a potential upside of 11.58%. Given Kanzhun’s stronger consensus rating and higher probable upside, 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 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.

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.