WallStSmart

Sea Ltd (SE)vsZKH Group Limited (ZKH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 194% more annual revenue ($27.72B vs $9.44B). SE leads profitability with a 5.9% profit margin vs -0.0%. SE earns a higher WallStSmart Score of 56/100 (C).

SE

Buy

56

out of 100

Grade: C

Growth: 8.7Profit: 5.5Value: 6.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.53

ZKH

Hold

38

out of 100

Grade: F

Growth: 4.7Profit: 2.5Value: 6.7Quality: 7.0
Piotroski: 6/9Altman Z: 1.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SEUndervalued (+56.1%)

Margin of Safety

+56.1%

Fair Value

$260.75

Current Price

$106.24

$154.51 discount

UndervaluedFair: $260.75Overvalued
ZKHUndervalued (+48.8%)

Margin of Safety

+48.8%

Fair Value

$6.79

Current Price

$2.92

$3.87 discount

UndervaluedFair: $6.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SE3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
48.1%10/10

Revenue surging 48.1% year-over-year

Market CapQuality
$65.07B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.15B8/10

Generating 1.1B in free cash flow

ZKH2 strengths · Avg: 9.5/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

Areas to Watch

SE3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Profit MarginProfitability
5.9%3/10

5.9% margin — thin

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

ZKH4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$465.42M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.2%3/10

Operating margin of 0.2%

Return on EquityProfitability
-0.1%2/10

ROE of -0.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, Market Cap, Free Cash Flow. Revenue growth of 48.1% demonstrates continued momentum. PEG of 1.04 suggests the stock is reasonably priced for its growth.

Bull Case : ZKH

The strongest argument for ZKH centers on Price/Book, Debt/Equity. Revenue growth of 12.8% demonstrates continued momentum.

Bear Case : SE

The primary concerns for SE are Altman Z-Score, Profit Margin, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.

Bear Case : ZKH

The primary concerns for ZKH are EPS Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

SE profiles as a hypergrowth stock while ZKH is a turnaround play — different risk/reward profiles.

SE carries more volatility with a beta of 1.52 — expect wider price swings.

SE is growing revenue faster at 48.1% — sustainability is the question.

Monitor INTERNET RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SE scores higher overall (56/100 vs 38/100) and 48.1% revenue growth. ZKH offers better value entry with a 48.8% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

ZKH Group Limited

CONSUMER CYCLICAL · INTERNET RETAIL · China

ZKH Group Limited is a forward-thinking investment holding company with a diversified portfolio spanning technology, finance, and real estate sectors. The company emphasizes sustainability and growth in emerging markets, leveraging its deep industry expertise and strategic alliances to fuel expansion. Committed to delivering long-term shareholder value, ZKH upholds strong corporate governance practices while aiming to generate positive social impact in the communities it operates. In a rapidly evolving market landscape, ZKH is well-positioned to adapt and thrive.

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