Reviewing Grom Social Enterprises (NASDAQ:GROM) & Kanzhun (NASDAQ:BZ)

Grom Social Enterprises (NASDAQ:GROM) and Kanzhun (NASDAQ:BZ) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Grom Social Enterprises and Kanzhun’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grom Social Enterprises	$3.72 million	0.94	-$12.53 million	($11.67)	-0.03
Kanzhun	$6.38 billion	1.12	$154.82 million	$0.39	48.44

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

Institutional & Insider Ownership

15.9% of Grom Social Enterprises shares are owned by institutional investors. Comparatively, 60.7% of Kanzhun shares are owned by institutional investors. 0.0% of Grom Social Enterprises shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Grom Social Enterprises and Kanzhun, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grom Social Enterprises	0	0	0	0	N/A
Kanzhun	0	1	8	0	2.89

Kanzhun has a consensus price target of $22.67, indicating a potential upside of 19.99%. Given Kanzhun’s higher possible upside, analysts plainly believe Kanzhun is more favorable than Grom Social Enterprises.

Profitability

This table compares Grom Social Enterprises and Kanzhun’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grom Social Enterprises	-386.01%	-89.97%	-70.42%
Kanzhun	20.55%	9.73%	7.45%

Risk and Volatility

Grom Social Enterprises has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Kanzhun has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Summary

Kanzhun beats Grom Social Enterprises on 11 of the 13 factors compared between the two stocks.

About Grom Social Enterprises

Grom Social Enterprises, Inc., through its subsidiaries, operates as a media, technology, and entertainment company in the United States and Philippines. It operates through three segments: Animation, Original Content, and Social and Technology. The company operates a social media network for children under the age of 13 years. It also produces animated films and televisions series; and provides web filtering services to schools and government agencies, as well as acquires, develops, and builds commercial potential of kids and family entertainment properties and associated business opportunities. Grom Social Enterprises, Inc. was founded in 2012 and is headquartered in Boca Raton, Florida.

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.