Comparing System1 (NYSE:SST) and Kanzhun (NASDAQ:BZ)

System1 (NYSE:SST) and Kanzhun (NASDAQ:BZ) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for System1 and Kanzhun, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
System1	0	1	0	0	2.00
Kanzhun	0	4	7	0	2.64

System1 presently has a consensus target price of $2.00, indicating a potential upside of 210.08%. Kanzhun has a consensus target price of $21.00, indicating a potential upside of 45.73%. Given System1’s higher possible upside, research analysts plainly believe System1 is more favorable than Kanzhun.

Volatility and Risk

System1 has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Kanzhun has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Insider & Institutional Ownership

87.5% of System1 shares are held by institutional investors. Comparatively, 60.7% of Kanzhun shares are held by institutional investors. 14.1% of System1 shares are held by company insiders. Comparatively, 5.6% of Kanzhun shares are held by company 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.

Profitability

This table compares System1 and Kanzhun’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
System1	-24.18%	-68.85%	-18.27%
Kanzhun	20.65%	10.31%	7.87%

Earnings and Valuation

This table compares System1 and Kanzhun”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
System1	$401.97 million	0.15	-$227.22 million	($1.21)	-0.53
Kanzhun	$838.33 million	6.55	$154.82 million	$0.45	32.02

Kanzhun has higher revenue and earnings than System1. System1 is trading at a lower price-to-earnings ratio than Kanzhun, indicating that it is currently the more affordable of the two stocks.

Summary

Kanzhun beats System1 on 10 of the 14 factors compared between the two stocks.

About System1

System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.

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.