Critical Review: KANZHUN (NASDAQ:BZ) and TransUnion (NYSE:TRU)

TransUnion (NYSE:TRU) and KANZHUN (NASDAQ:BZ) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Profitability

This table compares TransUnion and KANZHUN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TransUnion	15.08%	16.29%	6.67%
KANZHUN	53.16%	15.03%	12.02%

Insider and Institutional Ownership

60.7% of KANZHUN shares are owned by institutional investors. 0.4% of TransUnion shares are owned by insiders. Comparatively, 5.6% of KANZHUN shares are owned 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 summary of current ratings and recommmendations for TransUnion and KANZHUN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TransUnion	0	6	10	0	2.62
KANZHUN	0	3	3	0	2.50

TransUnion presently has a consensus target price of $94.38, indicating a potential upside of 14.47%. KANZHUN has a consensus target price of $19.33, indicating a potential upside of 11.75%. Given TransUnion’s stronger consensus rating and higher probable upside, equities analysts clearly believe TransUnion is more favorable than KANZHUN.

Risk & Volatility

TransUnion has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, KANZHUN has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Earnings & Valuation

This table compares TransUnion and KANZHUN”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TransUnion	$4.58 billion	3.45	$455.40 million	$3.79	21.75
KANZHUN	$8.71 billion	0.81	$391.15 million	$1.42	12.18

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

Dividends

TransUnion pays an annual dividend of $0.50 per share and has a dividend yield of 0.6%. KANZHUN pays an annual dividend of $0.51 per share and has a dividend yield of 2.9%. TransUnion pays out 13.2% of its earnings in the form of a dividend. KANZHUN pays out 35.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TransUnion has raised its dividend for 1 consecutive years.

Summary

TransUnion beats KANZHUN on 11 of the 17 factors compared between the two stocks.

About TransUnion

TransUnion operates as a global consumer credit reporting agency that provides risk and information solutions. The company operates through U.S. Markets, International, and Consumer Interactive segments. The U.S. Markets segment provides consumer reports, actionable insights, and analytic services to businesses, which uses its services to acquire new customers; assess consumer ability to pay for services; identify cross-selling opportunities; measure and manage debt portfolio risk; collect debt; verify consumer identities; and mitigate fraud risk. This segment serves various industry vertical markets, including financial services, technology, commerce and communications, insurance, media, services and collections, tenant and employment, and public sectors. The International segment offers credit reports, analytics, technology solutions, and other value-added risk management services; consumer services, which help consumers to manage their personal finances; consumer credit reporting, insurance and auto information solutions, and commercial credit information services. It serves customers in financial services, retail credit, insurance, automotive, collections, public sector, and communications industries through direct and indirect channels. The company was formerly known as TransUnion Holding Company, Inc. and changed its name to TransUnion in March 2015. TransUnion was founded in 1968 and is headquartered in Chicago, Illinois.

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.