Head to Head Contrast: Yirendai (YRD) & Care.com (CRCM)
Yirendai (NYSE: YRD) and Care.com (NYSE:CRCM) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.
Valuation & Earnings
This table compares Yirendai and Care.com’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Yirendai||$635.79 million||4.59||$213.72 million||$3.26||14.97|
|Care.com||$169.64 million||2.88||$8.45 million||$0.10||164.22|
Yirendai has higher revenue and earnings than Care.com. Yirendai is trading at a lower price-to-earnings ratio than Care.com, indicating that it is currently the more affordable of the two stocks.
Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 3.0%. Care.com does not pay a dividend. Yirendai pays out 45.4% of its earnings in the form of a dividend.
This table compares Yirendai and Care.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for Yirendai and Care.com, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Yirendai presently has a consensus price target of $29.00, suggesting a potential downside of 40.57%. Care.com has a consensus price target of $14.00, suggesting a potential downside of 14.74%. Given Care.com’s stronger consensus rating and higher possible upside, analysts plainly believe Care.com is more favorable than Yirendai.
Institutional and Insider Ownership
6.9% of Yirendai shares are held by institutional investors. Comparatively, 73.7% of Care.com shares are held by institutional investors. 24.7% of Care.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Yirendai has a beta of 8.51, meaning that its share price is 751% more volatile than the S&P 500. Comparatively, Care.com has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Yirendai beats Care.com on 9 of the 14 factors compared between the two stocks.
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.
Care.com Company Profile
Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.
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