JOYY (NASDAQ:JOYY) and Hello Group (NASDAQ:MOMO) Head to Head Review

Hello Group (NASDAQ:MOMO) and JOYY (NASDAQ:JOYY) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Valuation & Earnings

This table compares Hello Group and JOYY”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hello Group	$1.48 billion	0.32	$114.97 million	$0.98	4.48
JOYY	$2.12 billion	1.85	$2.10 billion	$4.19	19.17

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

Insider & Institutional Ownership

51.0% of Hello Group shares are owned by institutional investors. Comparatively, 36.8% of JOYY shares are owned by institutional investors. 61.4% of Hello Group shares are owned by insiders. Comparatively, 43.0% of JOYY shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Hello Group and JOYY’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hello Group	11.02%	10.43%	8.41%
JOYY	9.64%	3.28%	2.85%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hello Group and JOYY, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hello Group	1	1	1	0	2.00
JOYY	0	1	6	0	2.86

Hello Group presently has a consensus target price of $9.05, suggesting a potential upside of 106.15%. JOYY has a consensus target price of $83.40, suggesting a potential upside of 3.83%. Given Hello Group’s higher possible upside, research analysts clearly believe Hello Group is more favorable than JOYY.

Volatility and Risk

Hello Group has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, JOYY has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Summary

JOYY beats Hello Group on 8 of the 14 factors compared between the two stocks.

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.

About JOYY

JOYY Inc., through its subsidiaries, operates social media platforms that offer users engaging and experience across various video and audio-based social platforms. The company operates Bigo Live, a live streaming platform that allows users to live stream specific moments, such as live talk with other users, make video calls, and watch trend videos; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a casual game-oriented social platform; and imo, a chat and instant messaging application with functions, including video calls, text messages, and photo and video sharing. It operates in the People’s Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, and Southeast Asia and others. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.