Analyzing JOYY (NASDAQ:JOYY) and Trivago N.V. ADS (NASDAQ:TRVG)

JOYY (NASDAQ:JOYY) and Trivago N.V. ADS (NASDAQ:TRVG) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for JOYY and Trivago N.V. ADS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOYY	0	1	6	0	2.86
Trivago N.V. ADS	0	6	1	1	2.38

JOYY currently has a consensus target price of $83.40, indicating a potential upside of 7.92%. Trivago N.V. ADS has a consensus target price of $5.57, indicating a potential downside of 4.62%. Given JOYY’s stronger consensus rating and higher possible upside, equities research analysts clearly believe JOYY is more favorable than Trivago N.V. ADS.

Profitability

This table compares JOYY and Trivago N.V. ADS’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%
Trivago N.V. ADS	2.19%	7.76%	4.23%

Valuation & Earnings

This table compares JOYY and Trivago N.V. ADS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOYY	$2.12 billion	1.78	$2.10 billion	$4.19	18.44
Trivago N.V. ADS	$620.90 million	0.66	$12.69 million	$0.06	97.33

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

Institutional & Insider Ownership

36.8% of JOYY shares are owned by institutional investors. Comparatively, 4.5% of Trivago N.V. ADS shares are owned by institutional investors. 43.0% of JOYY shares are owned by insiders. Comparatively, 6.5% of Trivago N.V. ADS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

JOYY has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Trivago N.V. ADS has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Summary

JOYY beats Trivago N.V. ADS on 10 of the 15 factors compared between the two stocks.

About JOYY

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 Trivago N.V. ADS

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.