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

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

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Calloway’s Nursery and ZKH Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calloway’s Nursery	$87.25 million	0.61	$5.75 million	N/A	N/A
ZKH Group	$1.23 billion	0.38	-$43.00 million	($0.35)	-10.40

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

Analyst Recommendations

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

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

ZKH Group has a consensus price target of $12.65, indicating a potential upside of 247.53%. Given ZKH Group’s stronger consensus rating and higher probable upside, analysts plainly believe ZKH Group is more favorable than Calloway’s Nursery.

Profitability

This table compares Calloway’s Nursery and ZKH Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Calloway’s Nursery	N/A	N/A	N/A
ZKH Group	-2.47%	-6.86%	-3.11%

Summary

Calloway’s Nursery beats ZKH Group on 6 of the 11 factors compared between the two stocks.

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.

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.