Weibo Corporation (NASDAQ: WB) and Yirendai (NYSE:YRD) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Weibo Corporation and Yirendai, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weibo Corporation 0 0 8 0 3.00
Yirendai 1 0 1 0 2.00

Weibo Corporation currently has a consensus price target of $86.71, indicating a potential downside of 13.06%. Yirendai has a consensus price target of $29.00, indicating a potential downside of 41.77%. Given Weibo Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Weibo Corporation is more favorable than Yirendai.

Institutional & Insider Ownership

19.6% of Weibo Corporation shares are owned by institutional investors. Comparatively, 6.9% of Yirendai shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 3.0%. Weibo Corporation does not pay a dividend. Yirendai pays out 45.4% of its earnings in the form of a dividend.

Profitability

This table compares Weibo Corporation and Yirendai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weibo Corporation 23.22% 24.45% 17.30%
Yirendai 32.37% 80.79% 36.20%

Risk and Volatility

Weibo Corporation has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 8.52, meaning that its stock price is 752% more volatile than the S&P 500.

Valuation and Earnings

This table compares Weibo Corporation and Yirendai’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Weibo Corporation $842.20 million 24.55 $260.90 million $0.87 114.64
Yirendai $635.79 million 4.68 $213.72 million $3.26 15.28

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

Summary

Weibo Corporation beats Yirendai on 9 of the 15 factors compared between the two stocks.

Weibo Corporation Company Profile

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

Yirendai Company Profile

Yirendai Ltd. is engaged in online consumer finance marketplace business in China. The Company conducts its business in China, through Yi Ren Heng Ye Technology Development (Beijing) Co., Ltd. (Heng Ye) and its consolidated variable interest entity, Heng Cheng Technology Development (Beijing) Co., Ltd. (Heng Cheng). Heng Cheng operates its Website, www.yirendai.com, and has an Internet content provider (ICP) license as an Internet information provider. Its online marketplace facilitates standard loan products, express loan products and vertical loan products to borrowers. Uses for these loan products include home remodels, durable good purchases, travel and continuing education. Its online marketplace provides investors with various investing tools, such as automated investing tool and self-directed investing tool. It maintains a secondary loan market on its marketplace where investors can transfer the loans they hold prior to maturity at the fair value of the remaining loans.

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