Contrasting ZTO Express (Cayman) (NYSE:ZTO) & Tianci International (NASDAQ:CIIT)

by · The Markets Daily

ZTO Express (Cayman) (NYSE:ZTO – Get Free Report) and Tianci International (NASDAQ:CIIT – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

41.6% of ZTO Express (Cayman) shares are held by institutional investors. 41.3% of ZTO Express (Cayman) shares are held by company insiders. Comparatively, 56.5% of Tianci International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ZTO Express (Cayman) and Tianci International’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
ZTO Express (Cayman)19.03%15.90%10.89%
Tianci International-14.73%-76.73%-71.50%

Volatility and Risk

ZTO Express (Cayman) has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500. Comparatively, Tianci International has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for ZTO Express (Cayman) and Tianci International, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
ZTO Express (Cayman)04112.50
Tianci International10001.00

ZTO Express (Cayman) currently has a consensus price target of $24.70, indicating a potential upside of 21.98%. Given ZTO Express (Cayman)’s stronger consensus rating and higher possible upside, equities analysts clearly believe ZTO Express (Cayman) is more favorable than Tianci International.

Earnings & Valuation

This table compares ZTO Express (Cayman) and Tianci International”s revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
ZTO Express (Cayman)$7.02 billion1.61$1.30 billion$1.8610.89
Tianci International$9.28 million0.17-$2.64 million($9.00)-0.18

ZTO Express (Cayman) has higher revenue and earnings than Tianci International. Tianci International is trading at a lower price-to-earnings ratio than ZTO Express (Cayman), indicating that it is currently the more affordable of the two stocks.

Summary

ZTO Express (Cayman) beats Tianci International on 12 of the 14 factors compared between the two stocks.

About ZTO Express (Cayman)

(Get Free Report)

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. It offers freight forwarding services; and delivery services for e-commerce and traditional merchants, and other express service users. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China.

About Tianci International

(Get Free Report)

The Company’s primary line of business is global logistics. The Company through its subsidiary, Roshing, provides global logistics services, encompassing booking and the transportation arrangement and related logistics solutions. Roshing’s customized logistics solutions are tailored to meet the diverse needs of its customers. As a logistics shipping operator, Roshing focuses on ocean freight forwarding services, including container shipping and bulk goods shipping service. For the container shipping service, Roshing charters cargo space from shipping suppliers (such as shipowners, ship carrier or non-vessel operating common carriers) and then sub-charters that cargo space to its customers (cargo owners or cargo agents). For the bulk goods shipping service, Roshing issues fixture notes to customers, and then arranges the booking of ships, and signs chartering contracts with suppliers (such as shipowners). Roshing also tailors the selection of transport options, and arranges to transport the goods from the port of loading to the port of destination, so as to complete the performance of the contract. Roshing currently does not own or operate any transportation assets. By leveraging our senior management’s expertise in the global logistics industry and adopting an asset-light strategy at the early stage, Roshing has seen a significant growth in logistics revenue since 2023. Shufang Gao, our Chief Executive Officer previously worked for a globally renowned shipping conglomerate, with over 20 years of management experience. His expertise spans shipping operation management, and logistics transportation. Leveraging this experience, he has provided the Company with the managerial framework to expand its global logistics business, as well as access to relevant customer and supplier resources in the shipping industry. Roshing’s business is primarily carried out in Hong Kong and other locations in the Asia-Pacific region, mainly in Japan, South Korea, Vietnam. Roshing’s logistics services also include the shipment of goods to African countries. Roshing also generates revenue from the sale of electronic parts, and certain business and technical consulting services, independent from its global logistics business. Our principal executive offices are located in Tsim Sha Tsui, Kowloon, Hong Kong.