ZKH Group (NYSE:ZKH – Get Free Report) and Applied Industrial Technologies (NYSE:AIT – Get Free Report) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Insider and Institutional Ownership
9.5% of ZKH Group shares are held by institutional investors. Comparatively, 93.5% of Applied Industrial Technologies shares are held by institutional investors. 1.6% of Applied Industrial Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares ZKH Group and Applied Industrial Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ZKH Group | -0.02% | -0.06% | -0.03% |
| Applied Industrial Technologies | 8.35% | 22.17% | 13.43% |
Volatility & Risk
Analyst Ratings
This is a breakdown of recent recommendations and price targets for ZKH Group and Applied Industrial Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ZKH Group | 1 | 0 | 0 | 0 | 1.00 |
| Applied Industrial Technologies | 0 | 0 | 7 | 0 | 3.00 |
Applied Industrial Technologies has a consensus target price of $400.00, indicating a potential upside of 23.38%. Given Applied Industrial Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Applied Industrial Technologies is more favorable than ZKH Group.
Valuation & Earnings
This table compares ZKH Group and Applied Industrial Technologies”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 | 0.30 | -$19.44 million | ($0.01) | -294.00 |
| Applied Industrial Technologies | $4.97 billion | 2.40 | $414.52 million | $10.96 | 29.58 |
Applied Industrial Technologies has higher revenue and earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Applied Industrial Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Applied Industrial Technologies beats ZKH Group on 14 of the 14 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 Applied Industrial Technologies
Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.
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