Head to Head Analysis: EverQuote (NASDAQ:EVER) & Zhihu (NYSE:ZH)
by Sarita Garza · The Markets DailyZhihu (NYSE:ZH – Get Free Report) and EverQuote (NASDAQ:EVER – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Profitability
This table compares Zhihu and EverQuote’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zhihu | -7.25% | -4.83% | -3.60% |
| EverQuote | 15.16% | 50.29% | 36.69% |
Valuation & Earnings
This table compares Zhihu and EverQuote”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zhihu | $393.10 million | 0.73 | -$27.58 million | ($0.36) | -9.01 |
| EverQuote | $692.52 million | 1.24 | $99.31 million | $3.08 | 7.73 |
EverQuote has higher revenue and earnings than Zhihu. Zhihu is trading at a lower price-to-earnings ratio than EverQuote, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Zhihu has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.
Insider & Institutional Ownership
28.9% of Zhihu shares are held by institutional investors. Comparatively, 91.5% of EverQuote shares are held by institutional investors. 13.6% of Zhihu shares are held by insiders. Comparatively, 23.7% of EverQuote shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Zhihu and EverQuote, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zhihu | 1 | 0 | 0 | 0 | 1.00 |
| EverQuote | 0 | 2 | 6 | 0 | 2.75 |
EverQuote has a consensus target price of $25.67, suggesting a potential upside of 7.75%. Given EverQuote’s stronger consensus rating and higher probable upside, analysts plainly believe EverQuote is more favorable than Zhihu.
Summary
EverQuote beats Zhihu on 14 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 EverQuote
EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.