ZKH Group (NYSE:ZKH) & Core & Main (NYSE:CNM) Financial Analysis

Core & Main (NYSE:CNM) and ZKH Group (NYSE:ZKH) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Earnings and Valuation

This table compares Core & Main and ZKH Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core & Main	$7.65 billion	1.14	$441.00 million	$2.43	18.75
ZKH Group	$1.29 billion	0.20	-$19.44 million	($0.01)	-193.40

Core & Main has higher revenue and earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Core & Main, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Core & Main and ZKH Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	1	5	7	0	2.46
ZKH Group	1	0	0	0	1.00

Core & Main currently has a consensus target price of $54.40, indicating a potential upside of 19.39%. Given Core & Main’s stronger consensus rating and higher probable upside, equities analysts plainly believe Core & Main is more favorable than ZKH Group.

Insider and Institutional Ownership

94.2% of Core & Main shares are held by institutional investors. Comparatively, 9.5% of ZKH Group shares are held by institutional investors. 1.5% of Core & Main 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 Core & Main and ZKH Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.96%	25.98%	8.53%
ZKH Group	-0.02%	-0.06%	-0.03%

Volatility & Risk

Core & Main has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, ZKH Group has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Summary

Core & Main beats ZKH Group on 14 of the 14 factors compared between the two stocks.

About Core & Main

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.

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.