Head-To-Head Comparison: Yirendai (YRD) vs. Tucows (TCX)

Yirendai (NYSE: YRD) and Tucows (NASDAQ:TCX) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Dividends

Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. Tucows does not pay a dividend. Yirendai pays out 45.4% of its earnings in the form of a dividend.

Profitability

This table compares Yirendai and Tucows’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yirendai 32.37% 80.79% 36.20%
Tucows 4.85% 35.17% 5.02%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Yirendai and Tucows, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yirendai 1 0 3 0 2.50
Tucows 0 0 0 0 N/A

Yirendai currently has a consensus target price of $39.33, suggesting a potential downside of 5.79%. Given Yirendai’s higher possible upside, equities analysts plainly believe Yirendai is more favorable than Tucows.

Risk & Volatility

Yirendai has a beta of 8.34, suggesting that its share price is 734% more volatile than the S&P 500. Comparatively, Tucows has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Insider & Institutional Ownership

6.6% of Yirendai shares are owned by institutional investors. Comparatively, 45.8% of Tucows shares are owned by institutional investors. 13.2% of Tucows shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Yirendai and Tucows’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Yirendai $466.37 million 5.35 $160.79 million $3.26 12.81
Tucows $189.82 million 3.30 $16.06 million $1.30 45.54

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

Summary

Yirendai beats Tucows on 11 of the 15 factors compared between the two stocks.

About Yirendai

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.

About Tucows

Tucows Inc. is engaged in providing Internet services. The Company’s segments include Network Access Services and Domain Services. The Network Access Services segment includes mobile, fixed high-speed Internet access services, Internet hosting and network consulting services. The Domain Services segment wholesale and retail domain name registration services, value added services and portfolio services. The Company focuses on serving the needs of this network of resellers by providing services, interfaces, proactive and attentive customer service, reseller-oriented technology and agile design and development processes. The Company focuses its service offerings under brands, including OpenSRS, YummyNames, Platypus, Hover and Ting. As of December 31, 2016, the OpenSRS Domain Service managed 15 million domain names under the Tucows ICANN registrar accreditation and for other registrars. As of December 31, 2016, Ting managed mobile telephony services for approximately 151,000 subscribers.

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