Financial Analysis: 36Kr (NASDAQ:KRKR) and Opera (NASDAQ:OPRA)

Opera (NASDAQ:OPRA) and 36Kr (NASDAQ:KRKR) are both small-cap communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares Opera and 36Kr”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Opera	$614.83 million	2.51	$108.28 million	$1.39	12.50
36Kr	$32.59 million	0.17	$1.55 million	($2.40)	-1.17

Opera has higher revenue and earnings than 36Kr. 36Kr is trading at a lower price-to-earnings ratio than Opera, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Opera and 36Kr, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Opera	0	2	3	0	2.60
36Kr	1	0	0	0	1.00

Opera presently has a consensus price target of $24.75, suggesting a potential upside of 42.49%. Given Opera’s stronger consensus rating and higher possible upside, analysts clearly believe Opera is more favorable than 36Kr.

Insider & Institutional Ownership

10.2% of Opera shares are held by institutional investors. Comparatively, 0.1% of 36Kr shares are held by institutional investors. 84.4% of Opera shares are held by insiders. Comparatively, 39.4% of 36Kr shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Opera and 36Kr’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Opera	18.55%	9.14%	8.03%
36Kr	N/A	N/A	N/A

Risk and Volatility

Opera has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, 36Kr has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Summary

Opera beats 36Kr on 13 of the 13 factors compared between the two stocks.

About Opera

Opera Limited, together with its subsidiaries, provides mobile and PC web browsers and related products and services in Norway and internationally. The company offers mobile browser products, such as Opera Mini, Opera browser for Android and iOS, and Opera GX for PCs and Mobile; Opera Touch; PC browsers, including Opera for Computers and Opera GX; Apex Football; Opera VPN Pro; and Opera News, an AI-powered personalized news discovery and aggregation service. It provides Opera Crypto Browser for PCs and mobile; browser-based cashback rewards programs; owns GameMaker Studio, a 2D gaming development platform; and GXC, a gaming portal. In addition, the company operates Opera Ads, an online advertising platform; and offers Web3 and e-commerce services. Opera Limited was founded in 1995 and is headquartered in Oslo, Norway. Opera Limited is a subsidiary of Kunlun Tech Limited.

About 36Kr

36Kr Holdings Inc. provides content and business services in the People's Republic of China. It creates and distributes various content, including insightful reports on companies and industries, timely market updates, thought-provoking editorials, and commentaries, as well as original video and audio content in various industries, such as technology, consumer, retail, healthcare, media and entertainment, and enterprise services. The company's business services include online advertising services; enterprise value-added services, such as integrated marketing, advertisement agent, online/offline event, and consulting services; and subscription services to individuals, institutional investors, and enterprises. 36Kr Holdings Inc. was founded in 2010 and is headquartered in Beijing, the People's Republic of China.