ZKH Group (NYSE:ZKH – Get Free Report) and Bridgeline Digital (NASDAQ:BLIN – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Profitability
This table compares ZKH Group and Bridgeline Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZKH Group | -1.97% | -5.72% | -2.72% |
| Bridgeline Digital | -16.81% | -25.79% | -16.08% |
Volatility & Risk
ZKH Group has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Bridgeline Digital has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZKH Group | 1 | 0 | 0 | 0 | 1.00 |
| Bridgeline Digital | 1 | 1 | 1 | 0 | 2.00 |
Bridgeline Digital has a consensus price target of $4.62, indicating a potential upside of 386.32%. Given Bridgeline Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Bridgeline Digital is more favorable than ZKH Group.
Insider & Institutional Ownership
9.5% of ZKH Group shares are held by institutional investors. Comparatively, 15.1% of Bridgeline Digital shares are held by institutional investors. 23.5% of Bridgeline Digital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares ZKH Group and Bridgeline Digital”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ZKH Group | $1.20 billion | 0.43 | -$37.28 million | ($0.15) | -21.43 |
| Bridgeline Digital | $15.36 million | 0.75 | -$1.96 million | ($0.27) | -3.52 |
Bridgeline Digital has lower revenue, but higher earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Bridgeline Digital, indicating that it is currently the more affordable of the two stocks.
Summary
Bridgeline Digital beats ZKH Group on 9 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 Bridgeline Digital
Bridgeline Digital, Inc. operates as a marketing technology company in the United States, Canada, and internationally. The company offers HawkSearch, a site search, recommendation, and personalization application for marketers, merchandisers, and developers; Celebros Search, a commerce-oriented site search product that provides natural language processing with artificial intelligence; and Woorank, a Search Engine Optimization (SEO) audit tool that generates an instant performance audit of the site's technical, on-page, and off-page SEO. It also provides Bridgeline TruPresence, a web content management and eCommerce platform to support the needs of multi-unit organizations and franchises; Bridgeline Unbound, a technology suite that empower marketers to easily manage their digital experiences and create personalized customer journeys; and OrchestraCMS, a digital experience platform that enables development of custom solutions, third-party integrations, and delivery of digital transformation initiatives on the Salesforce platform. In addition, the company offers digital engagement services comprising digital strategy, web design and web development, usability engineering, information architecture, and SEO, as well as hosting services. It serves vertical markets, such as industrial distributors and wholesalers, franchises and enterprises, manufacturers, eCommerce retailers, health services and life sciences, technology, credit unions and banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was incorporated in 2000 and is based in Woburn, Massachusetts.
Receive News & Ratings for ZKH Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ZKH Group and related companies with MarketBeat.com's FREE daily email newsletter.
