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

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

Profitability

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

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Kingsoft Cloud and Zenvia, as reported by MarketBeat.

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

Kingsoft Cloud currently has a consensus target price 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.

Insider and Institutional Ownership

13.4% of Kingsoft Cloud shares are owned by institutional investors. Comparatively, 49.3% of Zenvia shares are owned by institutional investors. 14.2% of Kingsoft Cloud shares are owned by insiders. Comparatively, 78.4% of Zenvia shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

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

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

Zenvia has lower revenue, but higher earnings 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.

Volatility and Risk

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

Summary

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

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.

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.