Angie’s List (NASDAQ: ANGI) and YY (NASDAQ:YY) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Angie’s List -4.62% -392.52% -8.71%
YY 22.08% 39.07% 22.15%

Volatility & Risk

Angie’s List has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, YY has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Earnings & Valuation

This table compares Angie’s List and YY’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Angie’s List $302.30 million 2.35 $3.60 million ($0.23) -50.78
YY $1.43 billion 3.02 $369.82 million $5.24 14.72

YY has higher revenue and earnings than Angie’s List. Angie’s List is trading at a lower price-to-earnings ratio than YY, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

82.3% of Angie’s List shares are held by institutional investors. Comparatively, 54.7% of YY shares are held by institutional investors. 18.2% of Angie’s List 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 stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Angie’s List and YY, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Angie’s List 1 4 1 0 2.00
YY 1 5 9 0 2.53

Angie’s List currently has a consensus target price of $9.81, indicating a potential downside of 15.99%. YY has a consensus target price of $70.21, indicating a potential downside of 8.94%. Given YY’s stronger consensus rating and higher possible upside, analysts plainly believe YY is more favorable than Angie’s List.

Summary

YY beats Angie’s List on 11 of the 13 factors compared between the two stocks.

About Angie’s List

Angie’s List, Inc. operates a national local services consumer review service and marketplace. As of December 31, 2016, the Company helped facilitate transactions between over five million members and its collection of service providers in over 700 categories of service nationwide. Its tools, services and content across multiple platforms enables consumers to research, shop for and purchase local services for needs, as well as rate and review the providers of these services across the United States. Its ratings and reviews assist its members in identifying and hiring the provider for their local service needs. Its services include member services and service provider services. It compiles a breadth of relevant, member-generated ratings and reviews that provide insights, which could otherwise be difficult for consumers to obtain on their own. Its primary source of service provider revenue is term-based sales of advertising to service providers.

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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