Contrasting Teads (NASDAQ:TEAD) & JOYY (NASDAQ:JOYY)

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

Valuation and Earnings

This table compares Teads and JOYY”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teads	$571.30 million	0.09	-$517.07 million	($5.53)	-0.09
JOYY	$2.27 billion	1.73	$2.10 billion	$4.19	19.15

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

Risk and Volatility

Teads has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, JOYY has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.

Institutional and Insider Ownership

60.4% of Teads shares are owned by institutional investors. Comparatively, 36.8% of JOYY shares are owned by institutional investors. 12.0% of Teads shares are owned by company insiders. Comparatively, 43.0% of JOYY shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teads	-43.32%	-49.37%	-6.14%
JOYY	9.64%	3.28%	2.85%

Analyst Recommendations

This is a summary of recent ratings and target prices for Teads and JOYY, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teads	1	2	1	0	2.00
JOYY	0	1	6	0	2.86

Teads currently has a consensus target price of $1.00, indicating a potential upside of 95.69%. JOYY has a consensus target price of $83.40, indicating a potential upside of 3.93%. Given Teads’ higher probable upside, equities analysts clearly believe Teads is more favorable than JOYY.

Summary

JOYY beats Teads on 11 of the 14 factors compared between the two stocks.

About Teads

Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.

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.