Analyzing ZKH Group (NYSE:ZKH) and Calloway’s Nursery (OTCMKTS:CLWY)

ZKH Group (NYSE:ZKH) and Calloway’s Nursery (OTCMKTS:CLWY) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for ZKH Group and Calloway’s Nursery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZKH Group	0	0	2	0	3.00
Calloway’s Nursery	0	0	0	0	0.00

ZKH Group currently has a consensus target price of $12.65, suggesting a potential upside of 258.36%. Given ZKH Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe ZKH Group is more favorable than Calloway’s Nursery.

Earnings & Valuation

This table compares ZKH Group and Calloway’s Nursery”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	0.37	-$43.00 million	($0.35)	-10.09
Calloway’s Nursery	$87.25 million	0.61	$5.75 million	N/A	N/A

Calloway’s Nursery has lower revenue, but higher earnings than ZKH Group.

Institutional & Insider Ownership

9.5% of ZKH Group shares are owned by institutional investors. 36.4% of Calloway’s Nursery shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares ZKH Group and Calloway’s Nursery’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%
Calloway’s Nursery	N/A	N/A	N/A

Summary

Calloway’s Nursery beats ZKH Group on 6 of the 11 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 Calloway’s Nursery

Calloway's Nursery, Inc. operates garden centers in the United States. The company offers birding, fertilizers, garden tools,insect and pest control; mosquito control solutions, pottery, soils and mulches; weed control and fungicide to gardeners. It also provides cornelius home decor and lawn décor products. In addition, the company provides landscape design services. The company operates 24 stores under the Calloway's Nursery name in Texas. Calloway's Nursery, Inc. was founded in 1986 and is based in Fort Worth, Texas.