Comparing Leaf Group (LFGR) & YY (YY)

Leaf Group (NYSE: LFGR) and YY (NASDAQ:YY) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Valuation and Earnings

This table compares Leaf Group and YY’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Leaf Group $113.45 million 1.34 -$2.01 million ($1.58) -4.84
YY $1.18 billion 6.33 $219.49 million $5.79 20.49

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Leaf Group and YY, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leaf Group 0 1 4 0 2.80
YY 1 1 11 0 2.77

Leaf Group currently has a consensus target price of $10.30, indicating a potential upside of 34.64%. YY has a consensus target price of $91.75, indicating a potential downside of 22.68%. Given Leaf Group’s stronger consensus rating and higher probable upside, analysts clearly believe Leaf Group is more favorable than YY.

Insider & Institutional Ownership

65.8% of Leaf Group shares are held by institutional investors. Comparatively, 56.0% of YY shares are held by institutional investors. 47.6% of Leaf Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Leaf Group and YY’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leaf Group -25.98% -44.59% -34.40%
YY 22.23% 34.26% 22.11%

Risk and Volatility

Leaf Group has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, YY has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Summary

YY beats Leaf Group on 9 of the 13 factors compared between the two stocks.

Leaf Group Company Profile

Leaf Group Ltd., formerly Demand Media, Inc., is diversified Internet marketplaces and media company. The Company has online media properties and marketplace platforms that enable communities of creators to reach audiences in lifestyle categories. The Company operates an online studio platform for the professional creation and distribution of content, as well as two online artist marketplaces. Its business comprises two service offerings: Content & Media and Marketplaces. The Company creates media content, including text articles, videos, photographs and designed visual formats, and publishes such content to its owned and operated online properties and to its customers’ online properties. The Company also offers its content creation and distribution platform to provide custom content and other content marketing solutions to brands, publishers and advertisers.

YY Company Profile

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.

Receive News & Ratings for Leaf Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Leaf Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply