ZW Data Action Technologies (NASDAQ:CNET) & LQR House (NASDAQ:YHC) Critical Analysis

ZW Data Action Technologies (NASDAQ:CNET) and LQR House (NASDAQ:YHC) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Earnings and Valuation

This table compares ZW Data Action Technologies and LQR House”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZW Data Action Technologies	$7.69 million	0.88	-$3.76 million	($1.76)	-1.45
LQR House	$2.39 million	3.62	-$22.75 million	($114.74)	-0.01

ZW Data Action Technologies has higher revenue and earnings than LQR House. ZW Data Action Technologies is trading at a lower price-to-earnings ratio than LQR House, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ZW Data Action Technologies and LQR House’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZW Data Action Technologies	-50.16%	-100.39%	-39.07%
LQR House	-949.77%	-259.35%	-178.93%

Analyst Ratings

This is a summary of current recommendations for ZW Data Action Technologies and LQR House, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZW Data Action Technologies	1	0	0	0	1.00
LQR House	1	0	0	0	1.00

Risk and Volatility

ZW Data Action Technologies has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, LQR House has a beta of 4.51, indicating that its share price is 351% more volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of ZW Data Action Technologies shares are owned by institutional investors. 14.2% of ZW Data Action Technologies shares are owned by company insiders. Comparatively, 0.6% of LQR House shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

ZW Data Action Technologies beats LQR House on 8 of the 11 factors compared between the two stocks.

About ZW Data Action Technologies

ZW Data Action Technologies Inc., through its subsidiaries, offers omni-channel advertising, precision marketing, and data analysis management systems in the People’s Republic of China. The company offers Internet advertising, precision marketing, and related data services to small and medium enterprises through its Internet portals, including 28.com and liansuo.com that provide advertisers with tools to build sales channels in the form of franchisees, sales agents, distributors, and/or resellers. It also develops and operates blockchain technology-based products and services, as well as blockchain-based SaaS services that provides one-stop blockchain-powered enterprise management solutions in forms of NFT generations, data record, share, and storage module subscriptions, etc. In addition, the company offers other e-commerce O2O advertising, and marketing and related value-added technical services. Additionally, it offers online-content production, distribution, promotion, and live streamer training and management services. The company was formerly known as ChinaNet Online Holdings, Inc. and changed its name to ZW Data Action Technologies Inc. in October 2020. Data Action Technologies Inc. was founded in 2003 and is based in Beijing, the People’s Republic of China.

About LQR House

LQR House, Inc. provides digital marketing and brand development for alcoholic beverage space. It intends to integrate the supply, sales, and marketing facets of the alcoholic beverage space into one easy to use platform and become the one-stop-shop for everything related to alcohol. The company was founded on January 11, 2021 and is headquartered in Miami Beach, FL.