Connecture (CNXR) versus YY (YY) Financial Analysis
YY (NASDAQ: YY) and Connecture (NASDAQ:CNXR) are both internet services – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Earnings and Valuation
This table compares YY and Connecture’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|YY||$1.18 billion||4.42||$219.49 million||$5.42||17.20|
|Connecture||$81.89 million||0.05||-$26.53 million||($1.02)||-0.18|
YY has higher revenue and earnings than Connecture. Connecture is trading at a lower price-to-earnings ratio than YY, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
YY has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Connecture has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for YY and Connecture, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
YY currently has a consensus price target of $72.71, indicating a potential downside of 22.01%. Given YY’s higher probable upside, analysts plainly believe YY is more favorable than Connecture.
Institutional & Insider Ownership
56.5% of YY shares are held by institutional investors. Comparatively, 38.8% of Connecture shares are held by institutional investors. 58.1% of Connecture shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares YY and Connecture’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
YY beats Connecture on 10 of the 12 factors compared between the two stocks.
YY Inc. (YY) is a social platform that engages users in real-time online group activities through voice, video and text on personal computers and mobile devices. The Company’s segments include YY IVAS and others, Huya broadcasting, and 100 Education. YY enables users to create and organize groups of varying sizes to discover and participate in a range of online activities, including music shows, online games, dating shows, live game broadcasting and e-learning. YY offers users an entertainment experience through its social community. It owns the domain names of YY.com, Duowan.com, 100.com, Huya.com, Edu24ol.com and Zhiniu8.com. The Company’s YY platform, including YY.com, is jointly operated by personnel from Guangzhou Huaduo and Zhuhai Duowan. Its product, YY Client, enables users to engage in live interactions online. Its Web-based YY enables users to conduct real-time interactions through Web browsers without requiring any downloads or installations.
Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.
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