Connecture (OTCMKTS: CNXR) and YY (NASDAQ:YY) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Connecture and YY, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
YY 1 3 9 0 2.62

YY has a consensus price target of $82.83, indicating a potential downside of 22.08%. Given YY’s higher probable upside, analysts clearly believe YY is more favorable than Connecture.

Valuation and Earnings

This table compares Connecture and YY’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Connecture $81.89 million 0.04 -$26.53 million ($0.92) -0.14
YY $1.18 billion 5.67 $219.49 million $5.79 18.36

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.

Volatility & Risk

Connecture has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500. Comparatively, YY has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

38.8% of Connecture shares are held by institutional investors. Comparatively, 57.2% of YY shares are held by institutional investors. 68.6% of Connecture shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Connecture and YY’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Connecture -19.38% N/A -17.70%
YY 22.23% 34.26% 22.11%

Summary

YY beats Connecture on 10 of the 12 factors compared between the two stocks.

Connecture Company Profile

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.

YY Company Profile

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.

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