Contrasting Pinterest (NYSE:PINS) & Kanzhun (NASDAQ:BZ)

Pinterest (NYSE:PINS – Get Rating) and Kanzhun (NASDAQ:BZ – Get Rating) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Earnings and Valuation

This table compares Pinterest and Kanzhun’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinterest	$2.80 billion	5.79	-$96.05 million	($0.45)	-52.76
Kanzhun	$654.04 million	8.04	$15.55 million	$0.05	280.60

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

Profitability

This table compares Pinterest and Kanzhun’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinterest	-10.58%	-4.83%	-4.11%
Kanzhun	2.56%	1.00%	0.79%

Volatility and Risk

Pinterest has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Kanzhun has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Pinterest and Kanzhun, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinterest	0	12	10	0	2.45
Kanzhun	0	0	4	0	3.00

Pinterest presently has a consensus target price of $28.40, suggesting a potential upside of 19.63%. Kanzhun has a consensus target price of $23.90, suggesting a potential upside of 70.35%. Given Kanzhun’s stronger consensus rating and higher probable upside, analysts clearly believe Kanzhun is more favorable than Pinterest.

Institutional & Insider Ownership

72.0% of Pinterest shares are held by institutional investors. Comparatively, 48.4% of Kanzhun shares are held by institutional investors. 6.9% of Pinterest shares are held by insiders. Comparatively, 5.6% of Kanzhun 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.

Summary

Kanzhun beats Pinterest on 9 of the 14 factors compared between the two stocks.

About Pinterest

(Get Rating)

Pinterest, Inc. engages in the operation of a pinboard-style photo-sharing website. It allows users to create and manage theme-based image collections such as events, interests, and hobbies. The company was founded by Benjamin Silbermann, Paul C. Sciarra, and Evan Sharp in October 2008 and is headquartered in San Francisco, CA.

About Kanzhun

(Get Rating)

Kanzhun Limited operates an online recruitment platform, BOSS Zhipin in the People's Republic of China. Its recruitment platform assists the recruitment process between job seekers and employers for enterprises, and corporations. The company was founded in 2013 and is headquartered in Beijing, the People's Republic of China.