ZKH Group (NYSE:ZKH – Get Free Report) and Willis Lease Finance (NASDAQ:WLFC – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for ZKH Group and Willis Lease Finance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZKH Group | 1 | 0 | 0 | 0 | 1.00 |
| Willis Lease Finance | 0 | 1 | 0 | 1 | 3.00 |
Willis Lease Finance has a consensus price target of $71.00, suggesting a potential upside of 26.29%. Given Willis Lease Finance’s stronger consensus rating and higher possible upside, analysts plainly believe Willis Lease Finance is more favorable than ZKH Group.
Risk and Volatility
Institutional and Insider Ownership
9.5% of ZKH Group shares are owned by institutional investors. Comparatively, 93.7% of Willis Lease Finance shares are owned by institutional investors. 53.3% of Willis Lease Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares ZKH Group and Willis Lease Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZKH Group | -0.02% | -0.06% | -0.03% |
| Willis Lease Finance | 11.80% | 14.11% | 2.64% |
Valuation & Earnings
This table compares ZKH Group and Willis Lease Finance”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZKH Group | $1.29 billion | 0.30 | -$19.44 million | ($0.01) | -296.00 |
| Willis Lease Finance | $765.37 million | 1.55 | $113.76 million | $3.99 | 14.09 |
Willis Lease Finance has lower revenue, but higher earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Willis Lease Finance, indicating that it is currently the more affordable of the two stocks.
Summary
Willis Lease Finance beats ZKH Group on 13 of the 14 factors compared between the two stocks.
About ZKH Group
ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People’s Republic of China. The company provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services. It also engages in the production and sale of intelligent warehousing equipment. ZKH Group Limited was founded in 1998 and is based in Shanghai, the People’s Republic of China.
About Willis Lease Finance
Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2023, it had a total lease portfolio of 337 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 74 lessees in 42 countries; and managed a total lease portfolio of 198 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.
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