58.com (WUBA) and Yirendai (YRD) Financial Survey
58.com (NYSE: WUBA) and Yirendai (NYSE:YRD) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.
Volatility & Risk
58.com has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 8.56, suggesting that its share price is 756% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for 58.com and Yirendai, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
58.com currently has a consensus price target of $53.10, indicating a potential downside of 20.49%. Yirendai has a consensus price target of $29.00, indicating a potential downside of 35.20%. Given 58.com’s stronger consensus rating and higher probable upside, equities analysts plainly believe 58.com is more favorable than Yirendai.
Valuation and Earnings
This table compares 58.com and Yirendai’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|58.com||$1.33 billion||7.31||$230.09 million||$0.17||392.82|
|Yirendai||$635.79 million||4.21||$213.72 million||$3.26||13.73|
58.com has higher revenue and earnings than Yirendai. Yirendai is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.
This table compares 58.com and Yirendai’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
60.0% of 58.com 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.
58.com beats Yirendai on 8 of the 13 factors compared between the two stocks.
58.com Company Profile
58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.
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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