Head to Head Analysis: Zhihu (NYSE:ZH) and LiveWorld (OTCMKTS:LVWD)

Zhihu (NYSE:ZH) and LiveWorld (OTCMKTS:LVWD) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Zhihu and LiveWorld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zhihu	-7.18%	-4.82%	-3.57%
LiveWorld	4.32%	9.43%	5.24%

Insider and Institutional Ownership

28.9% of Zhihu shares are held by institutional investors. 13.6% of Zhihu shares are held by company insiders. Comparatively, 16.3% of LiveWorld shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Zhihu and LiveWorld, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhihu	1	0	0	0	1.00
LiveWorld	0	0	0	0	0.00

Valuation & Earnings

This table compares Zhihu and LiveWorld”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhihu	$393.10 million	0.70	-$27.58 million	($0.36)	-8.63
LiveWorld	$11.14 million	0.45	$330,000.00	$0.01	11.00

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

Volatility and Risk

Zhihu has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, LiveWorld has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Summary

LiveWorld beats Zhihu on 7 of the 12 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 LiveWorld

LiveWorld, Inc., a digital agency and software company, provides social media and technology solutions for pharmaceuticals, healthcare, and financial-travel service industries. It offers consulting, strategy, and creative solutions with human agents for moderation, engagement, customer care, and adverse events management, as well as conversation management software, and chatbots for digital campaigns and social media programs. The company was formerly known as Talk City, Inc. and changed its name to Liveworld, Inc. in May 2001. Liveworld, Inc. was incorporated in 1996 and is headquartered in Campbell, California.