Applied Industrial Technologies (NYSE:AIT – Get Free Report) and ZKH Group (NYSE:ZKH – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Institutional and Insider Ownership
93.5% of Applied Industrial Technologies shares are held by institutional investors. Comparatively, 9.5% of ZKH Group shares are held by institutional investors. 1.6% of Applied Industrial Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Applied Industrial Technologies has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, ZKH Group has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Applied Industrial Technologies | 8.35% | 22.17% | 13.43% |
| ZKH Group | -0.02% | -0.06% | -0.03% |
Valuation & Earnings
This table compares Applied Industrial Technologies and ZKH Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Industrial Technologies | $4.97 billion | 2.37 | $414.52 million | $10.96 | 29.30 |
| ZKH Group | $1.29 billion | 0.29 | -$19.44 million | ($0.01) | -291.00 |
Applied Industrial Technologies has higher revenue and earnings than ZKH Group. ZKH Group is trading at a lower price-to-earnings ratio than Applied Industrial Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Applied Industrial Technologies and ZKH Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Industrial Technologies | 0 | 0 | 7 | 0 | 3.00 |
| ZKH Group | 1 | 0 | 0 | 0 | 1.00 |
Applied Industrial Technologies currently has a consensus target price of $400.00, indicating a potential upside of 24.58%. Given Applied Industrial Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Applied Industrial Technologies is more favorable than ZKH Group.
Summary
Applied Industrial Technologies beats ZKH Group on 14 of the 14 factors compared between the two stocks.
About Applied Industrial Technologies
Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.
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.
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