Contrasting ZKH Group (NYSE:ZKH) and Viomi Technology (NASDAQ:VIOT)

ZKH Group (NYSE:ZKH) and Viomi Technology (NASDAQ:VIOT) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Insider and Institutional Ownership

9.5% of ZKH Group shares are owned by institutional investors. Comparatively, 1.2% of Viomi Technology shares are owned by institutional investors. 34.3% of Viomi Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares ZKH Group and Viomi Technology”s gross 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	0.38	-$19.98 million	($0.13)	-23.40
Viomi Technology	$347.23 million	0.21	$20.26 million	($0.21)	-5.14

Viomi Technology has lower revenue, but higher earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Viomi Technology, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

ZKH Group has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Viomi Technology has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for ZKH Group and Viomi Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZKH Group	1	0	0	0	1.00
Viomi Technology	1	0	0	0	1.00

Profitability

This table compares ZKH Group and Viomi Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZKH Group	-1.54%	-4.64%	-2.19%
Viomi Technology	N/A	N/A	N/A

Summary

Viomi Technology beats ZKH Group on 7 of the 11 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 Viomi Technology

Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising air conditioning systems, washing machines, water heaters, smart water kettles, sweeper robots, smart locks, and other smart devices, as well as blenders. It also provides a suite of complementary consumable products and small appliances, such as portable fans, rice cookers, water quality meters, water filter pitchers, stainless-steel insulated water bottles, smart toilet, and food waste disposals; and value-added services. The company sells its products directly to consumers through its online platform, Viomi mobile app, and e-commerce channels, including Youpin, JD.com, Tmall, Pinduoduo, and others, as well as offline experience stores. Viomi Technology Co., Ltd has a strategic partnership with Xiaomi Corporation. The company was founded in 2014 and is headquartered in Guangzhou, China.