Financial Analysis: Aerogrow International (OTCMKTS:AERO) vs. ZKH Group (NYSE:ZKH)

ZKH Group (NYSE:ZKH) and Aerogrow International (OTCMKTS:AERO) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Institutional & Insider Ownership

9.5% of ZKH Group shares are held by institutional investors. 12.8% of Aerogrow International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZKH Group	-2.47%	-6.86%	-3.11%
Aerogrow International	N/A	N/A	N/A

Earnings and Valuation

This table compares ZKH Group and Aerogrow International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZKH Group	$1.23 billion	0.39	-$43.00 million	($0.35)	-10.57
Aerogrow International	$39.21 million	2.81	$60,000.00	$0.28	11.46

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

Analyst Ratings

This is a summary of recent ratings for ZKH Group and Aerogrow International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZKH Group	0	0	2	0	3.00
Aerogrow International	0	0	0	0	0.00

ZKH Group currently has a consensus price target of $12.65, indicating a potential upside of 241.89%. Given ZKH Group’s stronger consensus rating and higher probable upside, research analysts clearly believe ZKH Group is more favorable than Aerogrow International.

Summary

Aerogrow International beats ZKH Group on 8 of the 13 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 Aerogrow International

AeroGrow International, Inc. engages in the development, marketing, direct-selling, and wholesale of indoor garden systems to consumers and retailers worldwide. The company's principal products include indoor gardens and proprietary seed pod kits that allow consumers to grow vegetables, such as tomatoes, chili peppers, and salad greens; fresh herbs comprising cilantro, chives, basil, dill, oregano, and mint; and flowers, which comprise petunias, snapdragons, geraniums, and vinca. It also provides grow lights and a patented nutrient formula, as well as various cooking, gardening, and decor accessories. The company offers its in-home garden systems under the AeroGardens name. Its products are used in the gardening, cooking, healthy eating, and home and office décor markets. The company also provides its products through online and in-store retail distribution, as well as through direct-to-consumer sales channels. AeroGrow International, Inc. was founded in 2002 and is headquartered in Boulder, Colorado. AeroGrow International, Inc. operates as a subsidiary of SMG Growing Media, Inc.