Financial Analysis: Chykingyoung Investment Development (OTCMKTS:CHYI) versus Yirendai (NYSE:YRD)

Chykingyoung Investment Development (OTCMKTS:CHYI) and Yirendai (NYSE:YRD) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional & Insider Ownership

2.0% of Yirendai shares are owned by institutional investors. 34.6% of Chykingyoung Investment Development shares are owned by insiders. Comparatively, 42.2% of Yirendai shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Chykingyoung Investment Development and Yirendai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chykingyoung Investment Development	N/A	12,866.70%	344.13%
Yirendai	21.07%	13.42%	9.73%

Volatility and Risk

Chykingyoung Investment Development has a beta of 7.18, suggesting that its share price is 618% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Chykingyoung Investment Development and Yirendai, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chykingyoung Investment Development	0	0	0	0	0.00
Yirendai	0	1	0	0	2.00

Valuation and Earnings

This table compares Chykingyoung Investment Development and Yirendai”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chykingyoung Investment Development	$110,000.00	1,788.78	-$1.10 million	$0.06	8.29
Yirendai	$795.41 million	0.65	$216.77 million	$2.06	2.89

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

Summary

Yirendai beats Chykingyoung Investment Development on 7 of the 12 factors compared between the two stocks.

About Chykingyoung Investment Development

Chykingyoung Investment Development Holdings Inc., through its subsidiary, OneWorld Hotel Destination Service Inc., provides Internet hotel booking services. The company offers a proprietary online hotel booking program for connecting users with available rooms in hotels worldwide. It primarily serves travel agents in Vancouver, Toronto, Calgary, and Montreal, Canada. The company was founded in 2006 and is based in Vancouver, Canada.

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.