Rightside Group (NASDAQ: NAME) and YY (NASDAQ:YY) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitabiliy, earnings, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares Rightside Group and YY’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rightside Group $59.94 million 3.43 -$12.40 million $2.11 5.01
YY N/A N/A N/A $4.67 12.09

YY has higher revenue, but lower earnings than Rightside Group. Rightside Group is trading at a lower price-to-earnings ratio than YY, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

68.4% of Rightside Group shares are held by institutional investors. Comparatively, 47.6% of YY shares are held by institutional investors. 2.4% of Rightside Group shares are held by insiders. Comparatively, 43.0% of YY shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Rightside Group 30.40% -24.26% -11.70%
YY 21.02% 38.15% 19.81%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rightside Group and YY, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rightside Group 0 2 0 0 2.00
YY 1 5 8 0 2.50

Rightside Group presently has a consensus price target of $10.80, suggesting a potential upside of 2.18%. YY has a consensus price target of $58.08, suggesting a potential upside of 2.83%. Given YY’s stronger consensus rating and higher possible upside, analysts plainly believe YY is more favorable than Rightside Group.

Volatility and Risk

Rightside Group has a beta of -0.75, indicating that its share price is 175% less volatile than the S&P 500. Comparatively, YY has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Summary

YY beats Rightside Group on 8 of the 11 factors compared between the two stocks.

About Rightside Group

Rightside Group, Ltd. is a provider of domain name services that enable businesses and consumers to find, establish and maintain their digital address. The Company is a registrar, offering domain name registration and other related services to resellers and domain name registrants. It provides infrastructure services through its eNom brand. It has over 16.5 million domain names under management. It has a portfolio of over 40 generic Top Level Domains (gTLDs) acquired through Internet Corporation for Assigned Names and Numbers (ICANN)’s expansion of new gTLDs. It has launched all of its gTLDs, including .NEWS, .LIVE, and .FAMILY, into general availability in the marketplace. Its registry services business builds a distribution network of over 125 ICANN accredited registrars, including GoDaddy, eNom and Name.com, as well as other complementary distribution partners, such as Website builders and e-mail service providers, that offer its gTLD domain names to businesses and consumers.

About YY

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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