iQIYI (NASDAQ:IQ – Get Free Report) and Yirendai (NYSE:YRD – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Institutional and Insider Ownership
52.7% of iQIYI shares are owned by institutional investors. Comparatively, 2.0% of Yirendai shares are owned by institutional investors. 57.8% of iQIYI shares are owned by company insiders. Comparatively, 42.2% of Yirendai shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares iQIYI and Yirendai’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| iQIYI | -2.61% | -4.72% | -1.36% |
| Yirendai | -14.35% | -7.58% | -5.21% |
Risk and Volatility
Analyst Recommendations
This is a summary of recent recommendations and price targets for iQIYI and Yirendai, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| iQIYI | 2 | 1 | 2 | 0 | 2.00 |
| Yirendai | 1 | 0 | 0 | 0 | 1.00 |
iQIYI presently has a consensus price target of $2.55, indicating a potential upside of 140.25%. Given iQIYI’s stronger consensus rating and higher possible upside, research analysts plainly believe iQIYI is more favorable than Yirendai.
Earnings & Valuation
This table compares iQIYI and Yirendai”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| iQIYI | $3.80 billion | 0.27 | -$29.50 million | ($0.10) | -10.60 |
| Yirendai | $817.84 million | 0.10 | $7.80 million | ($1.18) | -0.77 |
Yirendai has lower revenue, but higher earnings than iQIYI. iQIYI is trading at a lower price-to-earnings ratio than Yirendai, indicating that it is currently the more affordable of the two stocks.
Summary
iQIYI beats Yirendai on 11 of the 14 factors compared between the two stocks.
About iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
About Yirendai
Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.
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