Renren (NYSE: RENN) and Jiayuan.com International (NASDAQ:DATE) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Volatility & Risk

Renren has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Jiayuan.com International has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Renren and Jiayuan.com International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Renren 0 0 0 0 N/A
Jiayuan.com International 0 0 0 0 N/A

Insider & Institutional Ownership

2.9% of Renren shares are held by institutional investors. 42.4% of Renren shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Renren and Jiayuan.com International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Renren -183.43% -19.98% -12.81%
Jiayuan.com International 5.04% 8.55% 4.08%

Valuation & Earnings

This table compares Renren and Jiayuan.com International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Renren $63.36 million 10.76 -$185.35 million ($2.21) -4.52
Jiayuan.com International N/A N/A N/A $0.18 41.61

Jiayuan.com International has higher revenue, but lower earnings than Renren. Renren is trading at a lower price-to-earnings ratio than Jiayuan.com International, indicating that it is currently the more affordable of the two stocks.

Summary

Jiayuan.com International beats Renren on 5 of the 8 factors compared between the two stocks.

Renren Company Profile

Renren Inc. operates a real name social networking Internet platform in China. The Company enables users to connect and communicate with each other, share photos, and various features and services. The Company is developing Internet finance business to leverage its social networking services and user base in China, particularly focusing on the audience of college students and young people in China. The Company operates through two segments: Renren and Internet finance. The Company’s Renren segment focuses on online advertising and Internet value-added services (IVAS). The Company’s Internet finance segment includes Renren Fenqi, an online platform, which provides credit financing to college students in China through the form of payment by installments; its used automobile financing business, which provides credit financing to used automobile dealers, and Renren Licai, a financing and lending platform.

Jiayuan.com International Company Profile

Jiayuan.com International Ltd. (Jiayuan) is an online dating platform in China. The Company operates through three business segments: online services, personalized matchmaking services, and events and other services. The online services segment includes Jiayuan.com, Izhenxin.com and Qiuai.com. The Jiayuan.com platform enables single adults to meet, interact and form a long-term relationship. The izhenxin.com platform provides marriage-minded singles a members-only platform to interact. Qiuai.com is a mobile dating platform for mobile browsers and WAP platforms. The personalized matchmaking services segment provides personalized matchmaking services to individual users. The events and other services segment is engaged in organizing and hosting events, including speed-dating, dance parties and other social events for its users.

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