Zhihu (NYSE:ZH – Get Free Report) and Pinterest (NYSE:PINS – Get Free Report) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Insider & Institutional Ownership
28.9% of Zhihu shares are held by institutional investors. Comparatively, 88.8% of Pinterest shares are held by institutional investors. 13.6% of Zhihu shares are held by insiders. Comparatively, 8.1% of Pinterest shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for Zhihu and Pinterest, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zhihu | 1 | 0 | 0 | 0 | 1.00 |
| 0 | 19 | 17 | 0 | 2.47 |
Earnings and Valuation
This table compares Zhihu and Pinterest”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zhihu | $393.10 million | 0.63 | -$27.58 million | ($0.55) | -5.20 |
| $4.22 billion | 3.08 | $416.86 million | $0.34 | 68.24 |
Pinterest has higher revenue and earnings than Zhihu. Zhihu is trading at a lower price-to-earnings ratio than Pinterest, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Zhihu and Pinterest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zhihu | -11.33% | -7.71% | -5.75% |
| 5.46% | 7.49% | 5.62% |
Volatility & Risk
Zhihu has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Pinterest has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Summary
Pinterest beats Zhihu on 13 of the 14 factors compared between the two stocks.
About Zhihu
Zhihu Inc. operates an online content community in the People’s Republic of China. Its community allows people to seek inspiration, find solutions, make decisions, and have fun. The company offers technology, business support, and consulting services; information transmission, software, and information technology services. It also offers information and marketing services; vocational training; and internet services, as well as holds audio-visual permit. Zhihu Inc. was founded in 2010 and is headquartered in Beijing, the People’s Republic of China.
About Pinterest
Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
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