Dropbox (NASDAQ:DBX) vs. Yirendai (NYSE:YRD) Financial Survey

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

Analyst Ratings

This is a breakdown of recent recommendations for Dropbox and Yirendai, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dropbox	2	3	1	0	1.83
Yirendai	1	0	0	0	1.00

Dropbox presently has a consensus price target of $27.00, indicating a potential upside of 0.67%. Given Dropbox’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Dropbox is more favorable than Yirendai.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dropbox	18.71%	-30.01%	17.41%
Yirendai	0.31%	0.18%	0.13%

Insider & Institutional Ownership

94.8% of Dropbox shares are owned by institutional investors. Comparatively, 2.0% of Yirendai shares are owned by institutional investors. 35.5% of Dropbox shares are owned by insiders. Comparatively, 42.2% of Yirendai shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Dropbox and Yirendai”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dropbox	$2.52 billion	2.48	$508.40 million	$1.83	14.66
Yirendai	$817.84 million	0.22	$7.80 million	$0.03	68.50

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

Volatility & Risk

Dropbox has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Yirendai has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Summary

Dropbox beats Yirendai on 10 of the 14 factors compared between the two stocks.

About Dropbox

Dropbox, Inc. provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

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.