Head to Head Analysis: KANZHUN (NASDAQ:BZ) & Innodata (NASDAQ:INOD)

KANZHUN (NASDAQ:BZ) and Innodata (NASDAQ:INOD) are both mid-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Analyst Recommendations

This is a summary of recent ratings and price targets for KANZHUN and Innodata, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KANZHUN	0	3	2	0	2.40
Innodata	0	2	2	1	2.80

KANZHUN presently has a consensus price target of $19.33, indicating a potential upside of 17.78%. Innodata has a consensus price target of $116.67, indicating a potential upside of 96.09%. Given Innodata’s stronger consensus rating and higher probable upside, analysts plainly believe Innodata is more favorable than KANZHUN.

Insider & Institutional Ownership

60.7% of KANZHUN shares are held by institutional investors. Comparatively, 30.7% of Innodata shares are held by institutional investors. 5.6% of KANZHUN shares are held by insiders. Comparatively, 11.8% of Innodata shares are held 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.

Valuation & Earnings

This table compares KANZHUN and Innodata”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KANZHUN	$8.71 billion	0.78	$391.15 million	$1.42	11.56
Innodata	$317.16 million	6.45	$32.18 million	$1.32	45.07

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

Volatility & Risk

KANZHUN has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Innodata has a beta of 2.98, suggesting that its share price is 198% more volatile than the S&P 500.

Profitability

This table compares KANZHUN and Innodata’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%
Innodata	14.66%	37.79%	20.92%

Summary

Innodata beats KANZHUN on 9 of the 14 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 Innodata

Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services. This segment also provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that offers marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.