Autohome (ATHM) and Yirendai (YRD) Critical Survey
Autohome (NYSE: ATHM) and Yirendai (NYSE:YRD) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.
Volatility & Risk
Autohome has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 7.82, meaning that its stock price is 682% more volatile than the S&P 500.
This table compares Autohome and Yirendai’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Autohome and Yirendai, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Autohome currently has a consensus price target of $72.27, suggesting a potential upside of 24.58%. Yirendai has a consensus price target of $55.00, suggesting a potential upside of 52.57%. Given Yirendai’s higher possible upside, analysts plainly believe Yirendai is more favorable than Autohome.
Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 4.1%. Autohome does not pay a dividend. Yirendai pays out 47.0% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Autohome and Yirendai’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Autohome||$338.13 million||20.27||$176.85 million||$2.07||28.02|
|Yirendai||$466.37 million||4.62||$160.79 million||$3.15||11.44|
Autohome has higher earnings, but lower revenue than Yirendai. Yirendai is trading at a lower price-to-earnings ratio than Autohome, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
38.8% of Autohome shares are held by institutional investors. Comparatively, 8.8% of Yirendai shares are held by institutional investors. 5.7% of Autohome shares are held by insiders. Comparatively, 42.2% of Yirendai 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.
Yirendai beats Autohome on 9 of the 15 factors compared between the two stocks.
Autohome Inc. is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry. The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. The Company’s professionally produced content is created by editorial team and includes automobile-related articles and reviews, pricing trends in various local markets, and photos and video clips. Its database also includes new and used automobile listings and promotional information. Its dealer subscription services allow dealers to market their inventory and services through its Websites.
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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