Analyzing Yalla Group (NYSE:YALA) & Vivid Seats (NASDAQ:SEAT)

Vivid Seats (NASDAQ:SEAT) and Yalla Group (NYSE:YALA) 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 profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Valuation & Earnings

This table compares Vivid Seats and Yalla Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vivid Seats	$643.78 million	0.16	$9.43 million	$5.40	1.89
Yalla Group	$339.68 million	3.45	$135.68 million	$0.80	9.27

Yalla Group has lower revenue, but higher earnings than Vivid Seats. Vivid Seats is trading at a lower price-to-earnings ratio than Yalla Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vivid Seats and Yalla Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vivid Seats	-20.35%	8.93%	1.77%
Yalla Group	42.02%	20.64%	18.15%

Insider and Institutional Ownership

39.9% of Vivid Seats shares are owned by institutional investors. Comparatively, 4.7% of Yalla Group shares are owned by institutional investors. 89.2% of Vivid Seats shares are owned by insiders. Comparatively, 52.2% of Yalla Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Vivid Seats has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Yalla Group has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Vivid Seats and Yalla Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vivid Seats	2	7	2	0	2.00
Yalla Group	0	1	0	0	2.00

Vivid Seats currently has a consensus price target of $30.50, indicating a potential upside of 198.87%. Given Vivid Seats’ higher possible upside, equities research analysts clearly believe Vivid Seats is more favorable than Yalla Group.

Summary

Vivid Seats beats Yalla Group on 7 of the 13 factors compared between the two stocks.

About Vivid Seats

Vivid Seats Inc. operates an online ticket marketplace in the United States, Canada, and Japan. The company operates in two segments, Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers; processes ticket sales on its website and mobile applications through its distribution partners; and sells tickets for sports, concerts, theater events, and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing, and fulfill orders across multiple ticket resale marketplaces; and Vivid Picks daily fantasy sports that allows users to partake in contests by making picks from various sport and player matchups. The Resale segment acquires tickets to resell on secondary ticket marketplaces; and provides internal research and development support for Skybox and to deliver seller software and tools. The company was founded in 2001 and is headquartered in Chicago, Illinois.

About Yalla Group

Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company’s platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.