ZKH Group (NYSE:ZKH) versus Tractor Supply (NASDAQ:TSCO) Critical Survey

ZKH Group (NYSE:ZKH) and Tractor Supply (NASDAQ:TSCO) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Profitability

This table compares ZKH Group and Tractor Supply’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZKH Group	N/A	N/A	N/A
Tractor Supply	7.66%	52.99%	12.14%

Earnings & Valuation

This table compares ZKH Group and Tractor Supply’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZKH Group	$8.72 billion	0.18	-$43.00 million	N/A	N/A
Tractor Supply	$14.65 billion	2.00	$1.11 billion	$10.27	26.40

Tractor Supply has higher revenue and earnings than ZKH Group.

Insider and Institutional Ownership

9.5% of ZKH Group shares are owned by institutional investors. Comparatively, 98.7% of Tractor Supply shares are owned by institutional investors. 0.2% of Tractor Supply shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for ZKH Group and Tractor Supply, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZKH Group	0	0	1	0	3.00
Tractor Supply	2	8	14	0	2.50

ZKH Group currently has a consensus price target of $21.30, suggesting a potential upside of 78.09%. Tractor Supply has a consensus price target of $251.25, suggesting a potential downside of 7.35%. Given ZKH Group’s stronger consensus rating and higher probable upside, analysts clearly believe ZKH Group is more favorable than Tractor Supply.

Summary

Tractor Supply beats ZKH Group on 9 of the 11 factors compared between the two stocks.

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.

About Tractor Supply

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.