Comparing KANZHUN (NASDAQ:BZ) and TransUnion (NYSE:TRU)

KANZHUN (NASDAQ:BZ) and TransUnion (NYSE:TRU) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Dividends

KANZHUN pays an annual dividend of $0.15 per share and has a dividend yield of 0.9%. TransUnion pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. KANZHUN pays out 10.6% of its earnings in the form of a dividend. TransUnion pays out 13.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TransUnion has increased its dividend for 1 consecutive years. KANZHUN is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

KANZHUN has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, TransUnion has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for KANZHUN and TransUnion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KANZHUN	0	3	3	0	2.50
TransUnion	0	6	10	0	2.62

KANZHUN presently has a consensus target price of $19.33, suggesting a potential upside of 18.77%. TransUnion has a consensus target price of $94.38, suggesting a potential upside of 23.12%. Given TransUnion’s stronger consensus rating and higher probable upside, analysts clearly believe TransUnion is more favorable than KANZHUN.

Insider & Institutional Ownership

60.7% of KANZHUN shares are owned by institutional investors. 5.6% of KANZHUN shares are owned by insiders. Comparatively, 0.4% of TransUnion shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares KANZHUN and TransUnion”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KANZHUN	$1.18 billion	5.65	$391.15 million	$1.42	11.46
TransUnion	$4.58 billion	3.21	$455.40 million	$3.79	20.23

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

Profitability

This table compares KANZHUN and TransUnion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KANZHUN	53.16%	15.03%	12.02%
TransUnion	15.08%	16.29%	6.67%

Summary

TransUnion beats KANZHUN on 10 of the 17 factors compared between the two stocks.

About KANZHUN

Kanzhun Limited, together with its subsidiaries, provides online recruitment services in the People's Republic of China. The company offers its recruitment services through a mobile app under the BOSS Zhipin brand name. Its services allow enterprise customers to access and interact with job seekers and manage their recruitment process. The company also provides management consultancy and technical services. Kanzhun Limited was founded in 2013 and is headquartered in Beijing, the People's Republic of China.

About TransUnion

TransUnion operates as a global consumer credit reporting agency that provides risk and information solutions. The company operates through U.S. Markets, International, and Consumer Interactive segments. The U.S. Markets segment provides consumer reports, actionable insights, and analytic services to businesses, which uses its services to acquire new customers; assess consumer ability to pay for services; identify cross-selling opportunities; measure and manage debt portfolio risk; collect debt; verify consumer identities; and mitigate fraud risk. This segment serves various industry vertical markets, including financial services, technology, commerce and communications, insurance, media, services and collections, tenant and employment, and public sectors. The International segment offers credit reports, analytics, technology solutions, and other value-added risk management services; consumer services, which help consumers to manage their personal finances; consumer credit reporting, insurance and auto information solutions, and commercial credit information services. It serves customers in financial services, retail credit, insurance, automotive, collections, public sector, and communications industries through direct and indirect channels. The company was formerly known as TransUnion Holding Company, Inc. and changed its name to TransUnion in March 2015. TransUnion was founded in 1968 and is headquartered in Chicago, Illinois.