Financial Analysis: Kingsoft Cloud (NASDAQ:KC) versus Zenvia (NASDAQ:ZENV)

Zenvia (NASDAQ:ZENV) and Kingsoft Cloud (NASDAQ:KC) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

49.3% of Zenvia shares are owned by institutional investors. Comparatively, 13.4% of Kingsoft Cloud shares are owned by institutional investors. 78.4% of Zenvia shares are owned by company insiders. Comparatively, 14.2% of Kingsoft Cloud shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Zenvia has a beta of 2.06, indicating that its share price is 106% more volatile than the S&P 500. Comparatively, Kingsoft Cloud has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Profitability

This table compares Zenvia and Kingsoft Cloud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zenvia	-13.11%	-13.30%	-6.47%
Kingsoft Cloud	-25.33%	-24.99%	-11.54%

Analyst Recommendations

This is a breakdown of current recommendations for Zenvia and Kingsoft Cloud, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zenvia	0	0	0	0	N/A
Kingsoft Cloud	0	1	4	0	2.80

Kingsoft Cloud has a consensus price target of $4.10, suggesting a potential upside of 39.46%. Given Kingsoft Cloud’s higher probable upside, analysts plainly believe Kingsoft Cloud is more favorable than Zenvia.

Valuation & Earnings

This table compares Zenvia and Kingsoft Cloud”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zenvia	$161.77 million	0.39	-$12.22 million	($0.29)	-5.17
Kingsoft Cloud	$7.02 billion	0.11	-$306.53 million	($1.13)	-2.60

Zenvia has higher earnings, but lower revenue than Kingsoft Cloud. Zenvia is trading at a lower price-to-earnings ratio than Kingsoft Cloud, indicating that it is currently the more affordable of the two stocks.

Summary

Zenvia beats Kingsoft Cloud on 9 of the 13 factors compared between the two stocks.

About Zenvia

Zenvia Inc. provides customer experience communications platform which empowers businesses to create unique journeys for their end-customers along their life cycle across range of B2C verticals. Zenvia Inc. is based in S?O PAULO.

About Kingsoft Cloud

Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. The company's products portfolio includes cloud products, including infrastructure as a service (IaaS) infrastructure, platform as a service (PaaS) middleware, and software as a service (SaaS) applications that primarily consist of cloud computing, network, database, big data, security, storage, and delivery solutions. It offers research and development services, as well as enterprise digital solutions and related services. The company also provides public cloud services to customers in various verticals, including video, e-commerce, intelligent mobility, artificial intelligence, and mobile internet; and enterprise cloud services to customers in financial services, public service, and healthcare businesses. Kingsoft Cloud Holdings Limited was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.