Head to Head Survey: Yahoo! (AABA) & Its Peers

Yahoo! (NASDAQ: AABA) is one of 547 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its rivals? We will compare Yahoo! to similar businesses based on the strength of its analyst recommendations, dividends, risk, earnings, profitability, institutional ownership and valuation.

Earnings and Valuation

This table compares Yahoo! and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Yahoo! $5.17 billion -$214.32 million -3,474.26
Yahoo! Competitors $238.79 million $43.51 million 216.14

Yahoo! has higher revenue, but lower earnings than its rivals. Yahoo! is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Yahoo! has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, Yahoo!’s rivals have a beta of 0.56, suggesting that their average share price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Yahoo! and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yahoo! 0 12 7 0 2.37
Yahoo! Competitors 233 1562 1913 31 2.47

Yahoo! presently has a consensus target price of $51.69, indicating a potential downside of 25.65%. As a group, “Closed End Funds” companies have a potential upside of 50.31%. Given Yahoo!’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Yahoo! has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

79.3% of Yahoo! shares are held by institutional investors. Comparatively, 23.8% of shares of all “Closed End Funds” companies are held by institutional investors. 24.0% of Yahoo! shares are held by insiders. Comparatively, 5.1% of shares of all “Closed End Funds” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Yahoo! and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yahoo! -0.29% 0.77% 0.50%
Yahoo! Competitors -19.80% 7.29% 5.57%

Summary

Yahoo! rivals beat Yahoo! on 7 of the 13 factors compared.

Yahoo! Company Profile

Altaba Inc. (the Fund), formerly Yahoo! Inc., is a non-diversified, closed-end management investment company. The Fund seeks to track the combined investment return of the Alibaba Shares and the Yahoo Japan Shares it owns. Alibaba Shares represent an approximate 15% equity interest in Alibaba Group Holding Limited (Alibaba), and its Yahoo Japan Corporation ((Yahoo Japa) Shares represent an approximate 36% equity interest in Yahoo Japan. In addition to the Alibaba Shares and the Yahoo Japan Shares, the Fund also owns the minority investments, all of the equity interests in Excalibur IP, LLC (which owns the Excalibur IP Assets) and the marketable debt securities portfolio. The Fund’s external investment advisors are BlackRock Advisors, LLC and Morgan Stanley Smith Barney LLC.

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