Hello Group (NASDAQ:MOMO) versus JOYY (NASDAQ:JOYY) Critical Review

JOYY (NASDAQ:JOYY – Get Free Report) and Hello Group (NASDAQ:MOMO – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares JOYY and Hello Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JOYY 9.64% 3.28% 2.85%
Hello Group 11.02% 10.43% 8.41%

Analyst Ratings

This is a summary of recent ratings and price targets for JOYY and Hello Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JOYY 0 1 6 0 2.86
Hello Group 1 1 1 0 2.00

JOYY presently has a consensus price target of $83.40, suggesting a potential upside of 2.51%. Hello Group has a consensus price target of $9.05, suggesting a potential upside of 96.95%. Given Hello Group’s higher probable upside, analysts plainly believe Hello Group is more favorable than JOYY.

Risk & Volatility

JOYY has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Insider & Institutional Ownership

36.8% of JOYY shares are held by institutional investors. Comparatively, 51.0% of Hello Group shares are held by institutional investors. 43.0% of JOYY shares are held by company insiders. Comparatively, 61.4% of Hello Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares JOYY and Hello Group”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JOYY $2.12 billion 1.88 $2.10 billion $4.19 19.42
Hello Group $1.48 billion 0.33 $114.97 million $0.98 4.69

JOYY has higher revenue and earnings than Hello Group. Hello Group is trading at a lower price-to-earnings ratio than JOYY, indicating that it is currently the more affordable of the two stocks.

Summary

JOYY beats Hello Group on 8 of the 14 factors compared between the two stocks.

About JOYY

(Get Free Report)

JOYY Inc., through its subsidiaries, operates social media platforms that offer users engaging and experience across various video and audio-based social platforms. The company operates Bigo Live, a live streaming platform that allows users to live stream specific moments, such as live talk with other users, make video calls, and watch trend videos; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a casual game-oriented social platform; and imo, a chat and instant messaging application with functions, including video calls, text messages, and photo and video sharing. It operates in the People’s Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, and Southeast Asia and others. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.

About Hello Group

(Get Free Report)

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.

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